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An Empirical Analysis of Employment, Migration, Local Public Services and Regional Income Growth in Appalachia

Author

Listed:
  • Gebremeskel Gebremariam

    () (Department of Economics, Virginia Tech)

  • Tesfa Gebremedhin

    () (Regional Research Institute, West Virginia University)

  • Peter Schaeffer

    () (Division of Resource Management, West Virginia University)

  • Randall Jackson

    () (Regional Research Institute, West Virginia University)

  • Tim Phipps

    () (Division of Resource Management, West Virginia University)

Abstract

This study develops a five-equation simultaneous system in a partial lag-adjustment growth-equilibrium framework. It improved previous models in the growth-equilibrium tradition by explicitly modeling local government and regional income in the growth process. It also explicitly modeled gross in-migration and gross out-migration separately in order to spell out the differential effects. The results show the existence of feedback simultaneities among the endogenous variables of the model. This finding is important from economic policy perspective because it indicates that sector specific policies should be integrated and harmonized in order to achieve the desirable outcome. Under this circumstance, looking at the direct plus indirect impacts of a change in a given policy is important.

Suggested Citation

  • Gebremeskel Gebremariam & Tesfa Gebremedhin & Peter Schaeffer & Randall Jackson & Tim Phipps, 2007. "An Empirical Analysis of Employment, Migration, Local Public Services and Regional Income Growth in Appalachia," Working Papers Working Paper 2007-10, Regional Research Institute, West Virginia University.
  • Handle: RePEc:rri:wpaper:2007wp10
    as

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    File URL: http://rri.wvu.edu/wp-content/uploads/2012/11/wp2007-10.pdf
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    References listed on IDEAS

    as
    1. Duffy-Deno, Kevin T. & Eberts, Randall W., 1991. "Public infrastructure and regional economic development: A simultaneous equations approach," Journal of Urban Economics, Elsevier, vol. 30(3), pages 329-343, November.
    2. MacKinnon, James G. & White, Halbert & Davidson, Russell, 1983. "Tests for model specification in the presence of alternative hypotheses : Some further results," Journal of Econometrics, Elsevier, vol. 21(1), pages 53-70, January.
    3. Kelly D. Edmiston, 2004. "The Net Effects of Large Plant Locations and Expansions on County Employment," Journal of Regional Science, Wiley Blackwell, vol. 44(2), pages 289-320.
    4. Thomas Aronsson & Johan Lundberg & Magnus Wikstrom, 2001. "Regional Income Growth and Net Migration in Sweden, 1970-1995," Regional Studies, Taylor & Francis Journals, vol. 35(9), pages 823-830.
    5. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    6. Falch, Torberg & Rattso, Jorn, 1997. "Political economic determinants of school spending in federal states: Theory and time-series evidence," European Journal of Political Economy, Elsevier, vol. 13(2), pages 299-314, May.
    7. David J. Lewis & Gary L. Hunt & Andrew J. Plantinga, 2003. "Does Public Lands Policy Affect Local Wage Growth?," Growth and Change, Wiley Blackwell, vol. 34(1), pages 64-86.
    8. Greenwood, Michael J. & Hunt, Gary L., 1989. "Jobs versus amenities in the analysis of metropolitan migration," Journal of Urban Economics, Elsevier, vol. 25(1), pages 1-16, January.
    9. Michael Fritsch & Oliver Falck, 2003. "New Firm Formation by Industry over Space and Time: A Multi-Level Analysis," Discussion Papers of DIW Berlin 322, DIW Berlin, German Institute for Economic Research.
    10. Rupasingha, Anil & Goetz, Stephan J., 2004. "County Amenities and Net Migration," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 33(2), October.
    11. Greenwood, Michael J, 1975. "Research on Internal Migration in the United States: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(2), pages 397-433, June.
    12. Lundberg, Johan, 2003. "On the Determinants of Average Income Growth and Net Migration at the Municipal Level in Sweden," The Review of Regional Studies, Southern Regional Science Association, vol. 33(2), pages 229-253.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    regional development; simultaneous equations; growth; migration;

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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