scholarly journals Agglomeration Externalities and Sectoral Employment Growth in Cities

Author(s):  
Ayse Saime Doner

Firms benefit some external effects resulting from the concentration of economic activities in certain regions. These effects called “agglomeration economies” or “agglomeration externalities” are mainly divided into three categories – MAR, Jacobs and Porter externalities –, and regarded as the determinant factors of regional economic development and growth. This study analyzes the impact of agglomeration externalities on employment growth using Turkish data of 43 sectors operating in 81 Turkish cities between years 2001 and 2007. OLS regression analyses are repeated for each sector. As far as the MAR externalities are concerned, their impact on employment growth is found negative in 23 sectors while Jacobs externalities have significant and positive effects only on 4 sectors, most of which are from service sectors. As for Porter externalities, they prove to have positive effect on the regional employment growth for 16 sectors. Moreover, urbanization externalities are found to affect the regional growth positively in 4 sectors and negatively in 1 sector. While the impact of the initial level of regional labor supply is found positive, the initial level of regional employment level has negative effect on employment growth. Finally, the share of high education level in cities is found to have almost no effect on regional growth.

2019 ◽  
Vol 31 (1) ◽  
pp. 143-148
Author(s):  
Nikola Vidović ◽  
Milenko Dželetović ◽  
Hatidža Beriša

The paper focuses on a topic that explains the impact of credit flows on the conduct of monetary policy, as well as their impact on economic activities within national economies in certain countries in the world. Function and importance for the banking sector, as well as for all economic entities, which are categorized by company size, and the impact on the performance and realization of business activities.By comparing similarities and differences, there is a clear distinction between the basic banking channel of credit and the credit channel in the wider sense, as well as their degree of operation in the period before, during, and after the global economic crisis. The paper highlights the positive effects, as well as the negative, ie how their implementation affects the actors of a country's economic system and what are the consequences with a focus on demand, personal consumption, inflation and employment. The problems of adequate application of the model in periods of recession, as well as the degree of representation in developed countries, moderately developed, and countries in the transition period are studied.


1998 ◽  
Vol 30 (9) ◽  
pp. 1695-1704 ◽  
Author(s):  
G Hooks ◽  
V Getz

A growing body of evidence points toward the distinctiveness of the state's political and military policies and of the impact of these policies on economic processes. Regional scientists have been stressing the importance of new industrial districts, with an emphasis on interfirm relationships and the regional economy in which firms are embedded. In this paper, we document the state's role in regional growth and offer a reminder of the external and political actors which have influenced growth of industrial districts. We have acquired information from the US General Services Administration on each piece of property owned by the United States, including data on the agency controlling the installation and the functions performed at this location. Our examination of employment growth from 1970 to 1990 provides evidence that federal installations did stimulate growth in the regions in which they were located. More specifically, we find that NASA installations and the military's industrial facilities exerted a positive influence on employment growth over the period. However, despite the large budgets commanded by Department of Energy installations and their highly educated labor force, we found that the Department of Energy installations inhibited employment growth.


2021 ◽  
Vol 7 (1-2) ◽  
pp. 62-75
Author(s):  
Sanjeev Kumar ◽  
Falguni Pattanaik ◽  
Ajay K. Singh

The effect of trade on employment growth in India is a less-discussed issue in the international economics literature. Trade has increased the employment growth in India or not is still a debatable issue for many researchers. This study explores the impact of trade on India’s employment elasticity of growth using World development Indicator data of the World Bank and KLEMS database of India from 1982 to 2016. For this purpose, it has used the autoregressive distributed lag (ARDL) model of cointegration. The result indicates that although the share of trade in the national gross domestic product (GDP) has grown, it has failed to increase employment elasticity in the country. It may occur primarily because of the high volume of Indian imports. The share of the service sector in GDP, inflation, and foreign direct investment (FDI) are other vital factors influencing the employment intensity. Therefore, based on the empirical findings, it is suggested that policymakers should focus more on export, specifically on labor-intensive export. It will undoubtedly help to improve the employment level in the country.


2014 ◽  
Vol 1 (1) ◽  
pp. 54-78 ◽  
Author(s):  
Roberta Capello ◽  
Ugo Fratesi

AbstractGlobalisation is not a state of the world but an evolutionary process, which entails the increasing planetary integration of markets for goods and services, markets of location sites for economic activities, markets of production factors as technologies and information. Regions are involved in the globalization process to a different extent depending on their industrial specialization and physical accessibility from outside.The aim of this paper is to investigate how regions most exposed to globalization face tougher competition. Distinguishing between open and closed regional economies, the paper investigates the regional performance of each type of region and identifies the most important success factors linked to growth performance patterns. The aim of the analysis is to determine whether the role played by each success factor in regional growth changes across regions with different degrees of openness to the rest of the world. Interestingly, our results do not clearly show that more open regions take advantage from particular success factors. The impact of most success factors on regional differential growth, in fact, do not change among groups of regions. A higher average regional growth rate in open regions with respect to closed ones is therefore mainly explained by the regional endowment of success factors rather than by differentiated marginal effects among groups of regions.


Author(s):  
Tasiu Tijjani Sabiu ◽  
Muhamad Abduh

Despite the considerable resources devoted to SMEs by Islamic banks worldwide, and Nigeria in particular, there has been no rigorous empirical evidence regarding the effectiveness of Islamic banking inclusion on employment growth in SMEs globally. This study fills this gap by analysing the effectiveness of access to Islamic banking financing in promoting MSME's growth in Kano Metropolis, Nigeria. We focus on the impact of the credit lines facilitated by Jaiz Bank Plc in fostering firms’ growth measured in terms of employment. A survey based on a quasi- experimental approach was employed and the data were collected by means of a questionnaire distributed to a sample of 385 MSMEs' beneficiaries and non-beneficiaries of Islamic bank financing in Kano Metropolis, Nigeria. Using difference-in-difference and propensity score matching techniques to deal with selection bias, the study found significant positive effects on MSMEs’ employment growth. In addition, the paper highlights the important role of Islamic bank financing in mitigating the unemployment crisis in Nigeria. The paper recommends that improvement of the Islamic banking system by employing PLS financing, especially Musharaka, could foster MSMEs' financial inclusion and job creation.


2019 ◽  
Vol 43 (3) ◽  
pp. 254-285
Author(s):  
Craig Wesley Carpenter ◽  
Scott Loveridge

This article uses over 100,000 observations from limited-access and nationally representative US Census Bureau microdata sets to test determinants of employment growth among Latino-owned businesses (LOBs) in the Unites States. We draw variables from prior studies on determinants business growth in the general population and uniquely apply them to LOB using the robust data. Specifically, we examine the impact of numerous business owner, business, and regional characteristics on employment growth. We include industry and state-level fixed effects and test the robustness of results to various employment growth timespans. Some findings include (1) Latina-owned businesses grow faster than LOB, (2) formal education has a positive effect on employment growth and this effect is larger with education level and time, (3) Puerto Rican-owned businesses grow 2 percent slower than Mexican-owned establishments, (4) having multiple establishments reduces employment growth, (5) relying on personal savings for start-up capital impedes growth, and (6) nonmetro adjacency has a significant and negative effect, while population density does not. Our findings show that LOB may grow differently than other businesses and help advance the understanding of factors related to success of LOB. Implementing straightforward and low-cost policies aimed at better support for LOB could help bolster regional growth.


2020 ◽  
Vol 12 (7) ◽  
pp. 2731 ◽  
Author(s):  
Salma Jabeen ◽  
Sanam Haq ◽  
Arif Jameel ◽  
Abid Hussain ◽  
Muhammad Asif ◽  
...  

In Pakistan, as in other developing countries, rural women make ample contributions to the economy through vital productive and reproductive roles. This study aimed to evaluate the impact of women’s traditional economic activities that supplement their household economy directly through earning income and indirectly through savings expenditure and to assess the factors that influence their productivity performance. For this purpose, six rural areas from Khyber, which is located in the Pukhtoonkhwah province, were chosen to represent the south, north, and the central plain regions. About 480 women responded out of 600, which were selected using a snowball sampling technique from the entire three regions. The data was collected by conducting face-to-face interviews and focus group discussions (FGDs). About 68.33% respondents were illiterate, 47.71% were 31 to 40 years old, and 47.92% lived in a joint family system. Due to the strict Purdah (veil) culture, about 71.88% of the women’s economic activities were confined indoors, such as stitching; embroidery; basket and candle making; preparing pickles, jams, and squash; dairy products; apiculture; sericulture; livestock; poultry; nursery raising; and some agriculture-related off-farm activities. It was reported that the major decisions in the household are made by the male members due to the strong patriarchal norms and values. Development projects by the NGOs and the government have played a significant role to provide credit, training, and awareness that has arisen specifically in the north and the south regions. All of the women were aware of the positive effects of economic independence, but some of them also revealed the negative effects on their physical and psychological health as well as the social ties within the households and communities due to the extensive workload and time issues. The study concluded that many demographic social, cultural, religious, and economic factors negatively influence the women’s productive potential.


Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Muhammad Shahid Hassan ◽  
Haider Mahmood ◽  
Muhammad Naveed Tahir ◽  
Tarek Tawfik Yousef Alkhateeb ◽  
Ayesha Wajid

Improved governance in any economy indicates government stability, secured law and order, and minimum internal and external conflicts. A higher level of governance may demonstrate the healthy performance of economic activities and tax revenue collection. Hence, it is vital to investigate the relationship between governance and tax revenue collection in any developing country. Therefore, we aim to investigate the impact of governance on tax revenue in Pakistan using control variables inflation and industrial value-added. The Autoregressive Distributive Lag (ARDL) cointegration technique is utilized to find the long- and short-run effects of hypothesized variables on the tax revenue using a period 1976–2019. After employing a cointegration on the hypothesized model, the results expose that government stability, law and order, and internal and external conflicts leave a positive and significant impact on tax revenue in the long and short run. Hence, it is concluded that governance is an essential source in expanding tax revenue in Pakistan. Moreover, industrial value-added and inflation also show positive effects on the tax revenue. On the grounds of these results, it is proposed that the government should make serious efforts to improve governance and industrial activities for better tax revenue collection.


Sign in / Sign up

Export Citation Format

Share Document