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A Spatial Model Of Regional Variations In Employment Growth In Appalachia

Author

Listed:
  • Gebremeskel H. GEBREMARIAM

    (Virginia Tech, Blacksburg)

  • Tesfa G. GEBREMEDHIN

    (West Virginia University)

  • Peter V. SCHAEFFER

    (West Virginia University)

  • Randall W. JACKSON

    (West Virginia University)

  • Tim T. PHIPPS

    (West Virginia University)

Abstract

In this study, a spatial equilibrium model of employment growth is developed and empirically estimated by Generalized Spatial Two-Stage Least Squares (GS2SLS) estimator using cross-sectional data from Appalachian counties for 1990-2000. Besides the existence of spatial spillover effects, the results suggest that agglomerative effects that arise from the demand and the supply side contribute to employment growth in the study area during the study period. The policy implications of the findings are: (1) Regional cooperation of counties and communities is advisable and may in fact be necessary to design effective policies to encourage employment growth; and (2) Policy makers at the county level may need to design policies that can attract people with high endowments of human capital and higher income into their respective counties.

Suggested Citation

  • Gebremeskel H. GEBREMARIAM & Tesfa G. GEBREMEDHIN & Peter V. SCHAEFFER & Randall W. JACKSON & Tim T. PHIPPS, 2011. "A Spatial Model Of Regional Variations In Employment Growth In Appalachia," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 33, pages 161-184.
    • Handle: RePEc:tou:journl:v:33:y:2011:p:161-184
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    References listed on IDEAS

    as
    1. Kelejian, Harry H & Prucha, Ingmar R, 1999. "A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(2), pages 509-533, May.
    2. Maria ABREU & Henri L.F. DE GROOT & Raymond J.G.M. FLORAX, 2005. "Space And Growth: A Survey Of Empirical Evidence And Methods," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 21, pages 13-44.
    3. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2004. "Space and Growth," Tinbergen Institute Discussion Papers 04-129/3, Tinbergen Institute.
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    Keywords

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    JEL classification:

    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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