Local Economic Structure and Growth
The author tests how the local economic structure-measured by a region's sector specialization, competition, and diversity-affects the technological growth of manufacturing sectors. Most of the empirical literature on this topic assumes that in the long run more productive regions will attract...
| Main Author: | |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2005/10/6304740/local-economic-structure-growth http://hdl.handle.net/10986/8654 |
| id |
okr-10986-8654 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-86542021-04-23T14:02:43Z Local Economic Structure and Growth Almeida, Rita AGGREGATE EMPLOYMENT AIR POLLUTION AVERAGE COSTS AVERAGE GROWTH AVERAGE WAGE AVERAGE WAGES BUSINESS CYCLE CITIES COMPETITIVE ADVANTAGE COMPETITIVE ADVANTAGE OF NATIONS CONSTANT RETURNS CONSTANT RETURNS TO SCALE DECREASING RETURNS DEMAND ELASTICITY DIVERSIFICATION ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC STRUCTURE ECONOMICS ELASTICITY EMPIRICAL LITERATURE EMPIRICAL RESULTS EMPIRICAL WORK EMPLOYEE EMPLOYMENT EMPLOYMENT GROWTH EMPLOYMENT GROWTH RATES EMPLOYMENT INCREASES EMPLOYMENT REDUCTION EMPLOYMENT SHARE EXTERNALITIES EXTERNALITY FACTOR PRICES FIRM LEVEL GDP GEOGRAPHIC LOCALIZATION GEOGRAPHIC LOCALIZATION OF KNOWLEDGE SPILLOVERS GROWTH MODELS GROWTH REGRESSION HIGH CONCENTRATION INCREASE IN LABOR INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL DEVELOPMENT INFORMATION EXTERNALITIES INTERMEDIATE GOODS LABOR COST LABOR COSTS LABOR DEMAND LABOR FORCE LABOR INPUT LABOR MARKETS LABOR MIGRATION LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR SUPPLY LOCAL FIRMS LOCAL LABOR MARKET LOCAL LABOR MARKETS LONG RUN METROPOLITAN AREAS MONETARY ECONOMICS NEGATIVE EFFECT POINT ESTIMATE POLICY RESEARCH POLITICAL ECONOMY PREVIOUS SECTION PRODUCT MARKETS PRODUCTION FUNCTION PRODUCTIVITY GROWTH PRODUCTIVITY GROWTH RATE PRODUCTIVITY GROWTH RATES PRODUCTIVITY INCREASE REAL INTEREST RATE REAL WAGE REDUCED FORM EQUATION REGIONAL PRODUCTIVITY RETAIL TRADE SIGNIFICANT EFFECT STANDARD DEVIATION TECHNOLOGICAL CHANGE TIME SERIES TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TOTAL PRODUCTIVITY GROWTH TOTAL WAGE TRANSPORT UNEMPLOYMENT UNEMPLOYMENT RATE URBAN AREAS WAGE GROWTH WAGE LEVELS WORKER WORKERS The author tests how the local economic structure-measured by a region's sector specialization, competition, and diversity-affects the technological growth of manufacturing sectors. Most of the empirical literature on this topic assumes that in the long run more productive regions will attract more workers and use employment growth as a measure of local productivity growth. However, this approach is based on strong assumptions about national labor markets. The author shows that when these assumptions are relaxed, regional adjusted wage growth is a better measure of regional productivity growth than employment growth. She compares the two measures using data for Portugal between 1985 and 1994. With the regional adjusted wage growth, the author finds evidence of Marshall-Arrow-Romer (MAR) externalities in some sectors and no evidence of Jacobs or Porter externalities in most of the manufacturing sectors. These results are at odds with her findings for employment-based regressions, which show that concentration and region size have a negative and significant effect in most of the manufacturing sectors. These employment-based results are in line with most of the existing literature, which suggests that using employment growth to proxy for productivity growth leads to misleading results. 2012-06-21T15:55:44Z 2012-06-21T15:55:44Z 2005-10 http://documents.worldbank.org/curated/en/2005/10/6304740/local-economic-structure-growth http://hdl.handle.net/10986/8654 English Policy Research Working Paper; No. 3728 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Portugal |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AGGREGATE EMPLOYMENT AIR POLLUTION AVERAGE COSTS AVERAGE GROWTH AVERAGE WAGE AVERAGE WAGES BUSINESS CYCLE CITIES COMPETITIVE ADVANTAGE COMPETITIVE ADVANTAGE OF NATIONS CONSTANT RETURNS CONSTANT RETURNS TO SCALE DECREASING RETURNS DEMAND ELASTICITY DIVERSIFICATION ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC STRUCTURE ECONOMICS ELASTICITY EMPIRICAL LITERATURE EMPIRICAL RESULTS EMPIRICAL WORK EMPLOYEE EMPLOYMENT EMPLOYMENT GROWTH EMPLOYMENT GROWTH RATES EMPLOYMENT INCREASES EMPLOYMENT REDUCTION EMPLOYMENT SHARE EXTERNALITIES EXTERNALITY FACTOR PRICES FIRM LEVEL GDP GEOGRAPHIC LOCALIZATION GEOGRAPHIC LOCALIZATION OF KNOWLEDGE SPILLOVERS GROWTH MODELS GROWTH REGRESSION HIGH CONCENTRATION INCREASE IN LABOR INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL DEVELOPMENT INFORMATION EXTERNALITIES INTERMEDIATE GOODS LABOR COST LABOR COSTS LABOR DEMAND LABOR FORCE LABOR INPUT LABOR MARKETS LABOR MIGRATION LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR SUPPLY LOCAL FIRMS LOCAL LABOR MARKET LOCAL LABOR MARKETS LONG RUN METROPOLITAN AREAS MONETARY ECONOMICS NEGATIVE EFFECT POINT ESTIMATE POLICY RESEARCH POLITICAL ECONOMY PREVIOUS SECTION PRODUCT MARKETS PRODUCTION FUNCTION PRODUCTIVITY GROWTH PRODUCTIVITY GROWTH RATE PRODUCTIVITY GROWTH RATES PRODUCTIVITY INCREASE REAL INTEREST RATE REAL WAGE REDUCED FORM EQUATION REGIONAL PRODUCTIVITY RETAIL TRADE SIGNIFICANT EFFECT STANDARD DEVIATION TECHNOLOGICAL CHANGE TIME SERIES TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TOTAL PRODUCTIVITY GROWTH TOTAL WAGE TRANSPORT UNEMPLOYMENT UNEMPLOYMENT RATE URBAN AREAS WAGE GROWTH WAGE LEVELS WORKER WORKERS |
| spellingShingle |
AGGREGATE EMPLOYMENT AIR POLLUTION AVERAGE COSTS AVERAGE GROWTH AVERAGE WAGE AVERAGE WAGES BUSINESS CYCLE CITIES COMPETITIVE ADVANTAGE COMPETITIVE ADVANTAGE OF NATIONS CONSTANT RETURNS CONSTANT RETURNS TO SCALE DECREASING RETURNS DEMAND ELASTICITY DIVERSIFICATION ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC STRUCTURE ECONOMICS ELASTICITY EMPIRICAL LITERATURE EMPIRICAL RESULTS EMPIRICAL WORK EMPLOYEE EMPLOYMENT EMPLOYMENT GROWTH EMPLOYMENT GROWTH RATES EMPLOYMENT INCREASES EMPLOYMENT REDUCTION EMPLOYMENT SHARE EXTERNALITIES EXTERNALITY FACTOR PRICES FIRM LEVEL GDP GEOGRAPHIC LOCALIZATION GEOGRAPHIC LOCALIZATION OF KNOWLEDGE SPILLOVERS GROWTH MODELS GROWTH REGRESSION HIGH CONCENTRATION INCREASE IN LABOR INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL DEVELOPMENT INFORMATION EXTERNALITIES INTERMEDIATE GOODS LABOR COST LABOR COSTS LABOR DEMAND LABOR FORCE LABOR INPUT LABOR MARKETS LABOR MIGRATION LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR SUPPLY LOCAL FIRMS LOCAL LABOR MARKET LOCAL LABOR MARKETS LONG RUN METROPOLITAN AREAS MONETARY ECONOMICS NEGATIVE EFFECT POINT ESTIMATE POLICY RESEARCH POLITICAL ECONOMY PREVIOUS SECTION PRODUCT MARKETS PRODUCTION FUNCTION PRODUCTIVITY GROWTH PRODUCTIVITY GROWTH RATE PRODUCTIVITY GROWTH RATES PRODUCTIVITY INCREASE REAL INTEREST RATE REAL WAGE REDUCED FORM EQUATION REGIONAL PRODUCTIVITY RETAIL TRADE SIGNIFICANT EFFECT STANDARD DEVIATION TECHNOLOGICAL CHANGE TIME SERIES TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TOTAL PRODUCTIVITY GROWTH TOTAL WAGE TRANSPORT UNEMPLOYMENT UNEMPLOYMENT RATE URBAN AREAS WAGE GROWTH WAGE LEVELS WORKER WORKERS Almeida, Rita Local Economic Structure and Growth |
| geographic_facet |
Europe and Central Asia Portugal |
| relation |
Policy Research Working Paper; No. 3728 |
| description |
The author tests how the local economic structure-measured by a region's sector specialization, competition, and diversity-affects the technological growth of manufacturing sectors. Most of the empirical literature on this topic assumes that in the long run more productive regions will attract more workers and use employment growth as a measure of local productivity growth. However, this approach is based on strong assumptions about national labor markets. The author shows that when these assumptions are relaxed, regional adjusted wage growth is a better measure of regional productivity growth than employment growth. She compares the two measures using data for Portugal between 1985 and 1994. With the regional adjusted wage growth, the author finds evidence of Marshall-Arrow-Romer (MAR) externalities in some sectors and no evidence of Jacobs or Porter externalities in most of the manufacturing sectors. These results are at odds with her findings for employment-based regressions, which show that concentration and region size have a negative and significant effect in most of the manufacturing sectors. These employment-based results are in line with most of the existing literature, which suggests that using employment growth to proxy for productivity growth leads to misleading results. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Almeida, Rita |
| author_facet |
Almeida, Rita |
| author_sort |
Almeida, Rita |
| title |
Local Economic Structure and Growth |
| title_short |
Local Economic Structure and Growth |
| title_full |
Local Economic Structure and Growth |
| title_fullStr |
Local Economic Structure and Growth |
| title_full_unstemmed |
Local Economic Structure and Growth |
| title_sort |
local economic structure and growth |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2005/10/6304740/local-economic-structure-growth http://hdl.handle.net/10986/8654 |
| _version_ |
1764407871478431744 |