The Influence of Multiple Specializations on Economic Performance in U.S. Metropolitan Areas

Saheum Hong and Yu Xiao
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Saheum Hong: Korea Research Institute for Human Settlements, 254 Simin-daero, Anyang-si 431-712, Korea
Yu Xiao: Department of Landscape Architecture and Urban Planning, Texas A&M University, 3137 TAMU, College Station, TX 77843-3137, USA

Sustainability, 2016, vol. 8, issue 9, 1-16

Abstract: Scholars have recently been debating how economic structure affects regional economic performance. Regional economic structure typically indicates how the industries in regions are organized. The attribute of industrial organization in regions is typically measured by how the employment in a region is distributed among various sectors. If the employment in a region is highly concentrated on a limited number of sectors, that region is industrially specialized. On the contrary, when the employment is more evenly distributed among various industries, that region is highly diversified in its industrial organization. In this context, some researchers recognized that diversity and specialization are not opposite concepts. Instead, they can coexist, for example in the form of diversified specializations. In this study, this body of literature was extended by formulating an indicator to measure the extent of multiple specializations in regional economies and by examining the effect of multiple specializations on regional economic performance. Empirical analysis showed that specializing in multiple industrial pursuits helped regions to achieve both faster and more stable economic growth.

Keywords: economic structure; diversity; specialization; economic growth and stability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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