Spatial variations of Greek manufacturing employment growth: The effects of specialization and international trade

Georgios Fotopoulos, Dimitris Kallioras () and George Petrakos

Papers in Regional Science, 2010, vol. 89, issue 1, 109-133

Abstract: Abstract This research analyses the effects of international trade, relative specialization and regional industrial structure on Greek regional employment growth over the 1995–2003 period. For this purpose, it employs trade‐adjusted shift‐share analysis, along with linear model extensions. The results obtained highlight the importance of local conditions and regional deviations from business cycles and sectoral trends. Relative regional specialization has, on average, a positive effect on regional employment growth. The direction of industry‐mix effects depends on specializing on growing or declining sectors. Imports have negative employment effects; the exports’ positive effect is weak and domestic demand remains an important positive factor. Resumen Esta investigación analiza los efectos del comercio internacional, la especialización relativa y la estructura industrial regional en el crecimiento regional del empleo desde 1995 a 2003. Con este propósito, emplea análisis shift‐share ajustado por comercio, junto con extensiones de modelos lineales. Los resultados obtenidos resaltan la importancia de las condiciones locales y las desviaciones regionales de los ciclos empresariales y las tendencias sectoriales. La especialización regional relativa tiene, en promedio, un efecto positivo en el crecimiento del empleo regional. La dirección de los efectos de mezcla de industrias depende de la especialización en sectores en crecimiento o en declive. Las importaciones tienen efectos negativos en el empleo; el efecto positivo de las exportaciones es débil y la demanda doméstica es aun un factor positivo importante.

Date: 2010
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https://doi.org/10.1111/j.1435-5957.2009.00243.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:presci:v:89:y:2010:i:1:p:109-133

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