Business Commons^™

Industrial Diversity And Economic Performance: A Spatial Analysis, Hoa Phu Duy Tran

College of Business: Dissertations, Theses, and Student Research

This study examines the linkage between industrial diversity and economic growth in the 48 contiguous states of the United States. The period of analysis is 1992 through 2009. Five diversity indices are considered and economic growth is measured as the growth rate of nonfarm earnings. Other variables thought to influence economic growth are included in the analysis. They are the growth rate of nonfarm employment, capital, and farm earnings. Tests for the endogeneity of variables are conducted and the need for instrumental variable estimation methods is demonstrated.

First, I consider multivariate model that relates nonfarm earnings growth to the diversity …