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LOCAL INPUT AND PRODUCTIVITY GROWTH IN U.S. MANUFACTURING: 1972–2002 *
Author(s) -
Hammond George W.,
Thompson Eric C.
Publication year - 2011
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.2010.00690.x
Subject(s) - economics , productivity , economies of agglomeration , metropolitan area , labour economics , human capital , capital deepening , total factor productivity , solow residual , physical capital , capital (architecture) , stock (firearms) , investment (military) , growth accounting , capital formation , macroeconomics , financial capital , market economy , economic growth , geography , law , archaeology , politics , political science
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.