Analyzing Income Convergence at the County Level: The Case of Development in Central Appalachia

Santopietro, George D.

doi:10.1080/00213624.2002.11506528

Cited by 17 publications

(14 citation statements)

References 18 publications

(27 reference statements)

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“…Growth associated with these sectors outpaced the predicted growth of the mining sector as a whole, as sectors such as oil and gas extraction contributed to faster-than-expected income growth. This result is consistent with the findings of Santopietro (2002), who found that boom cycles associated with extractive industries can lead to unpredictable results in a convergence model. Over time, these outlier effects can lessen as rural, extractive economies diversify and become more strongly integrated in the national economy, as James and James (2015) noted in the case of central Appalachia.…”

Section: Discussionsupporting

confidence: 95%

“…Whether conditional or unconditional, these models have been applied widely in the United States at the national, state, and local levels (Berry and Kaserman 1993;Austin and Schmidt 1998;Rey and Montouri 1999;P. Johnson and Takeyama 2001;Rupasingha, Goetz, and Freshwater 2002;Santopietro, 2002;Higgins, Levy, and Young 2006;Rapino, Spaulding, and Hanink 2006). Though evidence of convergence is generally present, model performance and predictor significance are sometimes inconsistent.…”

Section: Introductionmentioning

confidence: 95%

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Sustained Firm Growth and Regional Income Convergence

Campbell

James

Kunkle³

2016

Papers in Applied Geography

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Despite evidence that the bulk of all job creation is attributed to a small subset of establishments, their performance has not been included in spatially explicit models of regional income convergence. Because convergence is an inherently geographic process and standard ordinary least squares (OLS) tests frequently violate basic statistical assumptions, a nonspatial model of income convergence is compared to a spatially explicit model incorporating both traditional location factors and the influence of sustained growth firms in the United States over the period from 1990 to 2010. Our primary findings indicate that the pace of convergence is both spatially contingent and likely slower than OLS estimates suggest. Further, sustained growth firms add significant explanatory power to the conditional model, lending credence to the proposition that establishment-level performance impacts the convergence process.

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Section: Discussionsupporting

confidence: 95%

Section: Introductionmentioning

confidence: 95%

Sustained Firm Growth and Regional Income Convergence

Campbell

James

Kunkle³

2016

Papers in Applied Geography

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“…They found a sectoral‐geographical effect, with the relative success of coal mining in that state's southern tier driving income swings that sometimes indicated convergence and at other times indicated divergence. Santopietro (2002) analyzed income convergence across all the counties of Appalachia with similar results; the resource‐based (coal) counties have a boom‐bust cycle that seems to limit income convergence from occurring as any type of ongoing process. Another analysis concerned county level per capita income convergence across the Great Plains (Austin and Schmidt 1998).…”

Section: Applicationmentioning

confidence: 81%

Have Per Capita Earnings and Income Converged across New England?

2006

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This article describes an analysis of recent change in both per capita earnings from employment and per capita income (including that from transfers and nonearnings sources) across New England's counties between 1970 and 2000. Breaking the period into three decade-long spans (1970-1980, 1980-1990, and 1990-2000), statistical evidence is strong that the region experienced "absolute divergence" in both earnings and income. However, further statistical analysis that incorporates cost of living, human capital, and other control factors indicates that "conditional convergence" at the county scale in New England was ongoing rapidly between 1970 and 1990 and appears to have been achieved by 2000. Copyright 2006 Blackwell Publishing.

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“…(, ) study the effects of coal market boom and bust on employment and other indicators of health in local Appalachian labor markets. In a cross‐sectional study, Santopietro () finds that income levels in the Appalachian region are only very slowly converging, and attributes some of this slow rate of convergence to the region's reliance on natural resource industries. Kilkenny and Partridge () find that export sector employment, represented in part by the share of employment in mining, fails to significantly contribute to rural economic growth.…”

Section: The Appalachian Region As a Laboratorymentioning

confidence: 99%

Coal Mining and the Resource Curse in the Eastern United States

Douglas

Walker

2016

Journal of Regional Science

111

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We measure the effect of resource-sector dependence on long-run income growth using the natural experiment of coal mining in 409 Appalachian counties selected for homogeneity. Using a panel data set , we find a one standard deviation increase in resource dependence is associated with 0.5-1 percentage point long-run and a 0.2 percentage point short-run decline in the annual growth rate of per capita personal income. We also measure the extent to which the resource curse operates through disincentives to education, and find significant effects, but this "education channel" explains less than 15 percent of the apparent curse.*The authors thank Seth Wiggins for providing essential GIS expertise in obtaining and analyzing coal quality and surface-mining data.

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Analyzing Income Convergence at the County Level: The Case of Development in Central Appalachia

Cited by 17 publications

References 18 publications

Sustained Firm Growth and Regional Income Convergence

Sustained Firm Growth and Regional Income Convergence

Have Per Capita Earnings and Income Converged across New England?

Coal Mining and the Resource Curse in the Eastern United States

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