A Simultaneous Spatial Panel Data Model of Regional Growth Variation: An Empirical Analysis of Employment, Income, Migration and Local Public Services
Gebremeskel H. Gebremariam,
Tesfa G. Gebremedhin,
Peter Schaeffer and
Working Papers from Virginia Polytechnic Institute and State University, Department of Economics
In this paper we develop a spatial panel simultaneous-equations model of employment growth, migration behavior, local public services and median household income in a partial lag-adjustment growth-equilibrium framework and utilizing a one-way error component model for the disturbances. To estimate the model, we developed a five-step new estimation strategy by generalizing the Generalized Spatial Three-Stage Least Squares (GS3SLS) approach outlined in Kelejian and Prucha (2004) into a panel data setting. The empirical implementation of the model uses county-level data from the 418 Appalachian counties for 1980-2000. The estimates show the existence of feedback simultaneities among the endogenous variables of the model, the existence of conditional convergence with respect to the respective endogenous variable of each equation of the model, and the existence of spatial autoregressive lag effects and spatial cross-regressive lag effects with respect to the endogenous variables of the model. Moreover, the speed of adjustment parameters is generally comparable to those in literature. One of the key conclusions is that sector-specific policies should be integrated and harmonized in order to give the desirable outcome. In addition, regionally focusing resources for development policy may yield greater returns than treating all locations the same.
Keywords: Simultaneous spatial panel data model; Regional growth variation; Spatial autoregressive and cross-regressive lags; FGS3SLS (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
ftp://repec.econ.vt.edu/Papers/Gebre/AAEA_Panel_Revised_Gebre_10_27_08.pdf First version, 2007 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Failed to CWD to directory Papers [Failed to change directory.]
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:vpi:wpaper:e07-12
Access Statistics for this paper
More papers in Working Papers from Virginia Polytechnic Institute and State University, Department of Economics Contact information at EDIRC.
Series data maintained by Djavad Salehi-Isfahani ().