Economic Growth and Structural Changes in Regional EmploymenT

Dorin Jula and Nicolae Jula

Journal for Economic Forecasting, 2013, issue 2, 52-69

Abstract: In a recent paper, Professor Dobrescu (2011) analyses the relationship between sectoral structure and economic growth, using data on the world economy for the period 1970-2008. In this paper, we try to extend this relationship at regional level. Concretely, using the Toda-Yamamoto version of the Granger causality test, we analyse the factors underlying the process of deep structural change in regional employment in Romania. The hypotheses tested regarding the causality process are the following: at regional level, economic growth causes structural changes in employment; structural changes in employment boost the economic growth or there is a mutual conditioning (a feedback relation). We tested the robustness of these hypotheses by using the panel data analysis and we found that growth causes structural changes in total regional employment and for regional activities in manufacturing, real estate activities, wholesale and retail, education, mining and quarrying, financial intermediation and insurance, health and social assistance, administrative services, construction. Further, we reject the hypothesis that structural changes in regional employment cause regional GDP to grow. We also found that there may be an asymmetry between the effect induced by economic growth and recession-induced effect on the intensity of structural changes in regional employment.

Keywords: regional employment; structural changes; regional growth; Toda-Yamamoto causality test (search for similar items in EconPapers)
JEL-codes: C21 C23 R11 R12 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:rjr:romjef:v::y:2013:i:2:p:52-69

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