We would like to thank Marlon Boarnet (co-editor) and three anonymous referees for thorough and constructive comments. Any remaining errors are our own.
LOCAL INPUT AND PRODUCTIVITY GROWTH IN U.S. MANUFACTURING: 1972–2002†
Article first published online: 17 SEP 2010
© 2010, Wiley Periodicals, Inc.
Journal of Regional Science
Volume 51, Issue 2, pages 339–354, May 2011
How to Cite
Hammond, G. W. and Thompson, E. C. (2011), LOCAL INPUT AND PRODUCTIVITY GROWTH IN U.S. MANUFACTURING: 1972–2002. Journal of Regional Science, 51: 339–354. doi: 10.1111/j.1467-9787.2010.00690.x
- Issue published online: 21 APR 2011
- Article first published online: 17 SEP 2010
- Received: March 2008; revised: July 2009, September 2009; accepted: December 2009.
ABSTRACT This research analyzes manufacturing growth and decline across metropolitan and nonmetropolitan regions during the 1972–2002 period. We decompose real value added growth across local labor market areas in the lower 48 U.S. states into contributions from labor, capital, and total factor productivity. We then estimate a model describing the long-run growth of labor, capital, and productivity and find that increased productivity increases the growth of labor and capital, as well as a positive correlation between labor and capital stock growth. We also find evidence that human capital investment and agglomeration economies encourage productivity growth, while unionization discourages it.