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.
File(s): File format is application/pdf https://www.kansascityfed.org/documents/937/Industrial_Diversity_Growth_and_Volatility_in_the_Seven_States_of_the_Tenth_District04.pdf
Provider: Federal Reserve Bank of Kansas City
Part of Series: Economic Review
Publication Date: 2012
Issue: Q IV