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Geography of Employment and Establishment Dynamics in Information Technology and E-Commerce Industries

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  • Cader, Hanas A.
  • Leatherman, John C.

Abstract

Firm-specific data were used to analyze variation in employment and establishment dy-namics (birth, death, expansion, and contraction) of metro, metro-adjacent, and non-metro re-gions in the State of Kansas. To account for overall dynamism, a model of regional change based on classical economic theory was developed. Employment and establishment dynamics in Information Technology (IT)-producing and using industries, E-commerce-intensive indus-tries, and goods and service-producing industries were studied using panel data between 1990 and 2003. Results indicated there were significantly more employment and establishment births in metro IT-producing, IT-using, and service-producing industries versus the metro-adjacent region. A comparison between the metro and non-metro regions showed higher le-vels of employment births in metro IT-using and service-producing industries. Overall, the non-metro region showed relatively better employment growth in IT-producing and goods-producing industries. The results shed light on prospects for rural areas to capture a share of the economic growth associated with these industry sectors.

Suggested Citation

  • Cader, Hanas A. & Leatherman, John C., 2008. "Geography of Employment and Establishment Dynamics in Information Technology and E-Commerce Industries," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 38(1), pages 1-18.
    • Handle: RePEc:ags:jrapmc:132336
    DOI: 10.22004/ag.econ.132336
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