Journal Article

Industrial diversity, growth, and volatility in the seven states of the Tenth District

Abstract: State and local officials have long sought to diversify the mix of industries in their regions, hoping to reduce short-term volatility in their communities? economic growth rates and potentially boost overall long-term growth. ; While theory does suggest that industrial diversity can reduce economic volatility, views are mixed on whether and how industrial diversity affects long-term growth. ; Examining the varied landscape of industrial diversity across hundreds of counties in the Tenth District?s seven-state region, Felix finds that counties with greater diversity did see more economic stability over a three-decade period. However, differences in industrial diversity had no significant impact on overall growth across the period, neither increasing nor restraining growth rates for employment or wages.

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Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Review

Publication Date: 2012

Volume: 97

Issue: Q IV