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

Published online by Cambridge University Press:  15 September 2016

Brian Lego ,
Tesfa Gebremedhin  and
Brian Cushing
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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.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 29 , Issue 2 , October 2000 , pp. 192 - 197
Copyright
Copyright © 2000 Northeastern Agricultural and Resource Economics Association 

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