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Regional manufacturing employment volatility in Canada: The effects of specialisation and trade

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Abstract

This article tests whether diversity, growth, plant size, and export intensity are empirically related to manufacturing employment volatility levels across Canadian regions during the period 1976-1997. Using cross-sectional analysis, we indicate that the regions tending to be more stable are more diverse; they have lower-than-average growth rates, larger plant sizes and higher export intensity. First-difference analysis indicates that increases in diversity and export intensity are associated with decreased volatility in larger regions, but these variables have the opposite effect for smaller regions. The analysis also shows that in areas where trade has increased, ceteris paribus, plants have grown larger and diversity has decreased. The former tends to dampen volatility and the latter tends to magnify it. When these offsetting effects are taken into account, increased trade liberalisation is found to reduce volatility for large regions, but volatility increases in smaller manufacturing centres. Copyright Springer-Verlag Berlin/Heidelberg 2004

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  • John Baldwin & W. Brown, 2004. "Regional manufacturing employment volatility in Canada: The effects of specialisation and trade," Papers in Regional Science, Springer;Regional Science Association International, vol. 83(3), pages 519-541, July.
  • Handle: RePEc:spr:presci:v:83:y:2004:i:3:p:519-541
    DOI: 10.1007/s10110-004-0210-6
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    Cited by:

    1. Zhengyun Jiang & Yun Feng & Jinping Song & Chengzhen Song & Xiaodi Zhao & Chi Zhang, 2023. "Study on the Spatial–Temporal Pattern Evolution and Carbon Emission Reduction Effect of Industry–City Integration in the Yellow River Basin," Sustainability, MDPI, vol. 15(6), pages 1-23, March.
    2. Robert B. Penfold, 2006. "Covariance Risk and Employment Growth in Canadian Cities," Growth and Change, Wiley Blackwell, vol. 37(1), pages 60-81, March.
    3. Elia, Stefano & Maggi, Elena & Mariotti, Ilaria, 2011. "Does the transport industry gain from manufacturing internationalization? An empirical investigation on the Italian regions," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 49, pages 53-74.
    4. Roberto Ezcurra, 2011. "Unemployment Volatility and Regional Specialization in the European Union," Regional Studies, Taylor & Francis Journals, vol. 45(8), pages 1121-1137.
    5. Jan Kluge, 2018. "Sectoral diversification as insurance against economic instability," Journal of Regional Science, Wiley Blackwell, vol. 58(1), pages 204-223, January.
    6. George Petrakos & Georgios Fotopoulos & Dimitris Kallioras, 2012. "Peripherality and Integration: Industrial Growth and Decline in the Greek Regions," Environment and Planning C, , vol. 30(2), pages 347-361, April.
    7. Hasan Engin Duran, 2015. "Regional Employment Volatility In Turkey: Causes And Consequences," Working Papers 2015/06, Turkish Economic Association.
    8. Piotr Ciżkowicz & Andrzej Rzońca & Wiktor Wojciechowski, 2012. "Determinanty regionalnych różnic w dynamice liczby pracujących w Polsce w latach 1999-2008," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 11-12, pages 59-77.
    9. Beaudry, Catherine & Schiffauerova, Andrea, 2009. "Who's right, Marshall or Jacobs? The localization versus urbanization debate," Research Policy, Elsevier, vol. 38(2), pages 318-337, March.
    10. Georgios Fotopoulos & Dimitris Kallioras & George Petrakos, 2010. "Spatial variations of Greek manufacturing employment growth: The effects of specialization and international trade," Papers in Regional Science, Wiley Blackwell, vol. 89(1), pages 109-133, March.
    11. Takano, Keisuke, 2019. "Does visible shock update firms' unrelated trade diversity in anticipation of future shock? Evidence from the Great East Japan Earthquake and expected Nankai Trough Earthquake," TDB-CAREE Discussion Paper Series E-2019-01, Teikoku Databank Center for Advanced Empirical Research on Enterprise and Economy, Graduate School of Economics, Hitotsubashi University.
    12. Richard V. Adkisson & Eduardo Saucedo, 2010. "Merchandise Exports and Job Quality, Evidence From the States," Economic Development Quarterly, , vol. 24(3), pages 231-242, August.
    13. Baldwin, John R. Beckstead, Desmond Gellatly, Guy, 2005. "Canada's Investments in Science and Innovation: Is the Existing Concept of Research and Development Sufficient?," Economic Analysis (EA) Research Paper Series 2005032e, Statistics Canada, Analytical Studies Branch.
    14. Jürgen Essletzbichler, 2005. "Diversity, stability and regional growth in the U.S. (1975-2002)," Papers in Evolutionary Economic Geography (PEEG) 0513, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2005.
    15. Francisco J. Pallares & Richard V. Adkisson, 2017. "The Impact of Industrial Diversification on Employment Growth in the 50 U.S. States: 2000-2013," Economic Development Quarterly, , vol. 31(4), pages 275-284, November.
    16. Page, Marjorie L., 2002. "Rural Diversification 1981 - 1996," Agriculture and Rural Working Paper Series 28046, Statistics Canada.
    17. Nazarczuk Jarosław M. & Umiński Stanisław, 2018. "The geography of openness to foreign trade in Poland: The role of special economic zones and foreign-owned entities," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 39(39), pages 97-111, March.
    18. Wu, Xiaoxia & Huang, Yan & Gao, Jian, 2022. "Impact of industrial agglomeration on new-type urbanization: Evidence from Pearl River Delta urban agglomeration of China," International Review of Economics & Finance, Elsevier, vol. 77(C), pages 312-325.
    19. Koen Frenken & Frank G. van Oort & Thijs Verburg & Ron A. Boschma, 2004. "Variety and regional economic growth in the Netherlands," Papers in Evolutionary Economic Geography (PEEG) 0502, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2004.
    20. Ben Salha, Ousama, 2013. "Does economic globalization affect the level and volatility of labor demand by skill? New insights from the Tunisian manufacturing industries," Economic Systems, Elsevier, vol. 37(4), pages 572-597.
    21. Jan Ženka & Marcela Chreneková & Lucie Kokešová & Veronika Svetlíková, 2021. "Industrial Structure and Economic Resilience of Non-Metropolitan Regions: An Empirical Base for the Smart Specialization Policies," Land, MDPI, vol. 10(12), pages 1-21, December.

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