Identifying Engines Of Growth In A Substate Economy

Abstract

In the current economy, states and substate regions seek to identify the sources of economic growth in order to improve economic development efforts.  The objectives of the paper are threefold.  First, using selected economic criteria, we examine the growth in the labor force of the substate region.  Second, using selected economic indicators, we detect the existence of growth in employment, establishments, payroll and wages in the substate region.  Finally, we explore the causal relationship among selected economic variables in the substate region and determine the direction of causality between variables.  Several techniques and analyses are used in this study, including labor force analysis, location quotients, and the error correction model. The methodology and economic indicators used in this research can be applied to similar substate regions allowing comparison among regions and facilitating regional economic development efforts.