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Static and Dynamic Externalities, Industry Composition, and State Labor Productivity: A Panel Study of States

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  • Mark D. Partridge
  • Dan S. Rickman

Abstract

Endogenous growth models have reignited interest in regional economic growth. Recent regional growth studies focus on dynamic externalities related to localization and urbanization economies. Yet, these studies typically attempt to observe externality‐induced productivity effects indirectly through examination of employment growth. Also, issues of regional differences in concentrations of nationally productive industries and distinguishing between static and dynamic externalities have received little attention. This study directly relates measures of externalities to productivity differences, decomposing them into those due to differences in industry composition and those due to average productivity differences in each industry. A two‐step procedure is used to distinguish static from dynamic externalities.

Suggested Citation

  • Mark D. Partridge & Dan S. Rickman, 1999. "Static and Dynamic Externalities, Industry Composition, and State Labor Productivity: A Panel Study of States," Southern Economic Journal, John Wiley & Sons, vol. 66(2), pages 319-335, October.
    • Handle: RePEc:wly:soecon:v:66:y:1999:i:2:p:319-335
    DOI: 10.1002/j.2325-8012.1999.tb00249.x
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    1. Jaison Abel & Todd Gabe, 2011. "Human Capital and Economic Activity in Urban America," Regional Studies, Taylor & Francis Journals, vol. 45(8), pages 1079-1090.
    2. Thomas Doring & Jan Schnellenbach, 2006. "What do we know about geographical knowledge spillovers and regional growth?: A survey of the literature," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 375-395.
    3. Adamson, Dwight W. & Waugh, Andrew, 2012. "Farm Operator Entry and Exit Behavior: A Longitudinal Analysis," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124053, Agricultural and Applied Economics Association.
    4. Harvey Cutler & Stephen Davies, 2010. "The Economic Consequences of Productivity Changes: A Computable General Equilibrium (CGE) Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1415-1426.
    5. Barkley, David L. & Kim, Yunsoo & Henry, Mark S., 2001. "Do Manufacturing Plants Cluster Across Rural Areas? Evidence From A Probabilistic Modeling Approach," REDRL Research Reports 18796, Clemson University, Regional Economic Development Research Laboratory (REDRL).

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