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Sectoral Growth Across U.S. States: Factor Content, Linkages, and Trade

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  • J. David Richardson
  • Pamela J. Smith

Abstract

Employing a 'factor-content' model that relates sectoral growth to regional factor endowments, we find that 1) U.S. state factor endowments are reasonably strong correlates of cross-state sectoral growth in value-added, with patterns that accord well with intuition; 2) that inter-sectoral differences in productivity change are marked -- estimates range from negative to annual rates over 10 percent; 3) little evidence of unusual growth linkages either from sector to sector or state to state, such as might be expected from recent discussions of externalities,... 4) ...nor of correlation between unusually strong sectoral growth and unusual levels of export dependence, another putative channel of externalities. Our principle data set is a 1987-89 panel of: sector-by-sector, state-by-state value added and international exports, as well as state endowments of patents, structural capital, and as many as six types of labor. 'Unusual' growth and exports are defined as the residual growth and international exports left unexplained by endowments.

Suggested Citation

  • J. David Richardson & Pamela J. Smith, 1995. "Sectoral Growth Across U.S. States: Factor Content, Linkages, and Trade," NBER Working Papers 5094, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:5094
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    Cited by:

    1. Crafts, Nicholas & Mulatu, Abay, 2006. "How Did the Location of Industry Respond to Falling Transport Costs in Britain Before World War I?," The Journal of Economic History, Cambridge University Press, vol. 66(3), pages 575-607, September.
    2. Kim, Sukkoo, 1999. "Regions, resources, and economic geography: Sources of U.S. regional comparative advantage, 1880-1987," Regional Science and Urban Economics, Elsevier, vol. 29(1), pages 1-32, January.
    3. Crafts, Nicholas & Mulatu, Abay, 2006. "How Did the Location of Industry Respond to Falling Transport Costs in Britain Before World War I?," The Journal of Economic History, Cambridge University Press, vol. 66(3), pages 575-607, September.
    4. Miguel Angel Quiroga Suazo, 2002. "Agglomeration economies: influence on the distribution of foreign investment in Chile," Estudios de Economia, University of Chile, Department of Economics, vol. 29(1 Year 20), pages 139-163, June.
    5. Geoffrey J. D. Hewings & Philip R. Israilevich & Graham Schindler, 1998. "The export-occupation interface: the Chicago experience," Assessing the Midwest Economy GL-8, Federal Reserve Bank of Chicago.
    6. Sukkoo Kim, 1997. "Regions, Resources, and Economic Geography: Sources of U.S. Regional Comparative Advantage, 1880-1987," NBER Working Papers 6322, National Bureau of Economic Research, Inc.

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    JEL classification:

    • F1 - International Economics - - Trade
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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