Author

Wan XuFollow

Date of Award

8-2011

Degree Type

Thesis

Degree Name

Master of Science

Major

Agricultural Economics

Major Professor

Dayton M. Lambert

Committee Members

Kim Jensen, Burton English

Abstract

Industry clusters can be important components of regional development. The effects of industry clusters on growth typically vary across geography, which has implications for targeted development strategies. Employment and business establishment growth in the Appalachian region (2000 – 2008) was regressed on industry cluster concentration indexes controlling for local determinants. The hypothesis that local response to growth determinants is geographically heterogeneous was tested using Smooth Transition spatial process models. This class of models exhibiting regime switching behavior is useful for identifying regional clusters, providing another tool for exploring relationships between geographical determinants and economic growth.

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