A Multi-Sector Export Base Model of Long-Run Regional Employment Growth

Brian Lego, Tesfa Gebremedhin and Brian Cushing ()

Agricultural and Resource Economics Review, 2000, vol. 29, issue 2, 192-197

Abstract: The relationships between intersectoral export and local employment and regional economic growth are analyzed in a long-run equilibrium framework. Dynamic location quotients decompose regional employment into export and local components for multiple sectors. Johansen's Full-Information Maximum Likelihood (FIML) approach is used to identify the existence and resultant rank of the co-integrating relationship between sectoral export and local employment in West Virginia's four metropolitan areas. Empirical results indicate inter-sectoral basic and non-basic employment form a co-integrating system of equations. Furthermore, this analysis shows that inter-sector shocks to local and export employment may cause multipliers to be positive or negative in magnitude.

Date: 2000
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Journal Article: A MULTI-SECTOR EXPORT BASE MODEL OF LONG-RUN REGIONAL EMPLOYMENT GROWTH (2000)
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