Employment and Population Growth in Florida’s Counties

Sooriyakumar Krishnapillai, Henry Kinnucan and John Leonard

The IUP Journal of Applied Economics, 2014, vol. XIII, issue 1, 7-19

Abstract: This paper studies the spatial effect of employment growth on population growth in Florida’s counties by developing a regional growth model as spatial panel simultaneous equations model of population and employment using county data for the period 1990-2010. Partial lag adjustment is introduced into this regional growth equilibrium model and one-way error component model for the disturbances is also utilized. Generalized Spatial Three-Stage Least Squares (GS3SLS) procedure outlined by Kelejian and Prucha (2004) is used to estimate the regional growth model. The findings show the existence of spatial lag in the model and indicate that both population growth and employment growth are not only dependent on the characteristics of a particular county, but also on those of its neighbors. These interdependences provide the need for economic development policy coordination among the counties.

Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:icf:icfjae:v:13:y:2014:i:1:p:7-19

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