There is a broad literature on the finance-growth nexus in the macroeconomics literature. Is there evidence for the finance-growth nexus at the sub-national region? If so, can macroeconomic finance and growth methods be extended to sub-national regions? Joseph Schumpeter argued that banks promote economic growth by choosing which projects to fund, by mobilizing underutilized capital, by managing risk and by monitoring managers. This dissertation proposes a modified Martin and Ottaviano (2001) model that allows for borrowing to form new firms or to expand existing firms. The model shows that if borrowing across regional lines is costly, above and beyond the normal interest rate, that new firm formation will tend to agglomerate in the more financially developed region. With this theory in hand, the dissertation goes on to test the effects of bank deposits on earned income in Kentucky counties. Using equation-by-equation and simultaneous equations panel data methods, this dissertation shows that there is a strong correlation between the size of the bank deposits in a county and income growth. Since Kentucky counties are small and economically interconnected, spatial autocorrelation tests are applied with the result that there are pockets within Kentucky where incomes are spatially correlated. Spatial panel estimates are then conducted to correct for spatial autocorrelation. These results show a strong correlation between deposits and income growth. This dissertation contributes to the literature in three ways. First, it proposes a model that ties endogenous growth, the New Economic Geography and the finance-growth nexus together in a Neo-Schumpeterian context. Second, it gives evidence for the finance-growth nexus in Kentucky counties under methods similar to those used in macroeconomics. Third, the dissertation suggests a way forward in performing future analysis of the finance-growth nexus in a sub-national context. Overall, this dissertation finds evidence to support the hypothesis that the size of the banking industry in a given county positively influences earned income growth. There is also evidence that having a large banking industry in a neighboring county has a positive spillover effect on earned income. Further estimates to control for endogeneity find evidence that the effect of deposits on income growth is stronger than the effect of income growth on deposits.

Ever since the first Industrial Revolution, during which many textile artisans lost their jobs to weaving machines, the relationship between technological progress and unemployment has been explored and examined by researchers and policy makers. Existing empirical research, mostly at the microeconomic level, has presented ambiguous results. Procuring data on 51 U.S. states for a period of 19 years and a large number of controls, this paper studies the employment effect of technological innovations with a novel state-level macroeconomic analysis. Using commercially-supplied Research and Development expenditure as a proxy, this paper finds that although technological innovations have a non-significant effect on employment at the general state level, there are a few factors that determine how well each state’s labor market responds to technological changes. More specifically, non-urbanized, non-tech-savvy, or states with a large number of workers employed in Manufacturing or Accommodation and Food Services industry experience a more severe unemployment effect than the other states. The results also suggest that unemployment rate is more negatively affected by technological innovations during the Obama Administration, compared with the Clinton and Bush Administration. This paper adds to the limited, macroeconomic literature on technological unemployment, and provides policy makers with important implications on how to prepare citizens for the imminent waves of technological changes.

In this paper the theory that Kentucky has a comparative advantage in agricultural employment, when compared to the United States, is examined. In order to test this hypothesis, a dynamic shift-share analysis was conducted using the thirteen major economic sector of Kentucky over the period 1970 to 1989. The resulting regional shift components, or competitive components, give support to the theory that a comparative advantage for Kentucky in agriculture does exist. Annual regional shift components, as well as their dynamic counterpart, possess predominately positive values, indicating outperformance by Kentucky’s agricultural sector when compared to the United States economy as a whole. Over the past few decades, the United States, as well as most other industrial nations, has experienced a dramatic decrease in employment in the agricultural sector of the economy. This employment shift has been accompanied by increased employment in the other sectors, such as manufacturing and services. The purpose of this thesis is to determine whether Kentucky has followed the same developmental trends as the United States, or has followed its own trends. If Kentucky has, indeed, followed its own trends, then what implications could this have on future development, as well as state developmental policy? In this paper, Kentucky’s developmental trends will be examined using dynamic shift-share analysis as a means of comparison. The first section provides a review of the relevant literature to support and explain the theory. Section two contains a discussion of the methodology and mechanics of shift-share analysis. The third section presents the data used, as well as a discussion of the methodology utilized in the analysis. Both the raw results and interpretations of these results are presented in section four. Finally, section five offers a summary and conclusions based on the empirical work.

Master of Regional and Community Planning / Department of Landscape Architecture/Regional and Community Planning / Katherine Nesse / The following report examines the craft beer industry as a major component of the beverage production cluster in Northern Colorado. By using the four locational determinants derived by Porter (1990) as a framework, this study evaluates the role of geography as a key component in an industry’s ability to foster a competitive advantage. Despite his focus on national competitiveness, Porter's diamond model has influenced strategic thinking on a regional scale (Stimson, Stough & Roberts, 2006). In turn, it can help us to understand the interactions that underlie localized cluster dynamics. The cluster conception in economic development literature assumes that each of Porter's components is equally spatially connected. Resources are focused towards building assets in a region defined by analyzing the cluster. However, factors of the craft beer industry in Northern Colorado did not completely adhere to the traditional parameters of regional cluster geography. Personal interviews with key actors involved in the craft beer industry, along with economic data revealed that local factors are not always the driving force behind the development of the craft beer industry. In addition, the data analysis indicates that determinants of cluster success may be significant at various geographic scales. Locational determinants may not operate within the same area as defined by cluster analysis. Thus, this report closes with a recommendation to consider the significance of proximity when looking to increase the competitiveness of a given industry cluster—for the relationship between locational determinants and geography varies between factors.

Ph.D. (Economics) / Until 1946 economists paid little attention to regional development. Economic development was mainly viewed in a national context. Even since the Second World War there remain important differences of opinion among economists on regional development theories. The aim of this study was first of all to make an analysis of the various theories. Secondly the instruments and results of decentralisation policies in Western Europe and Southern Africa during the period 1960 to 1980 were researched and discussed. The third aim was to discuss the term "Export Processing Zone".and to research the application thereof in various countries. Fourthly, the Gross Geographic Product and economically active popUlation of nine regions in Southern Africa were analised. Lastly the regional development strategies including the possible application of Export Processing Zones in Southern Africa were discussed in the light of the urgent need for employment creation - especially for Black workers. In the discussion of various regional development theories mention was made of the important role of technology, productivity, domestic and international price levels in addition to capital and labour for the optimum development of regions. Therefore the process of Cumulative Causation combined with export led development are important factors for a successful development strategy.

DISCOURSE submitted in fulfilment of the requirements for the degree MASTER OF SCIENCE in Development Planning at the UNIVERSITY OF THE WITWATERSRAND / This discourse investigates nature and the needs of global city development. It does this, through both theoretical and empirical research into this phenomenon, peculiar to the late twentieth century. The first part of the work explores the theoretical underpinnings of 'global city thesis'. and its host dominant critique, the 'dual city thesis'. Following this, an empirical assessment of the concept's relevance to Southern Africa's development is performed. For this purpose, the most dominant locality in the region, Central Gauteng, is analysed in terms of its potential for, and the problems involved with global city development in a middle-income country. It is found that global city development here would be desirable for both Central Gauteng and the greater SADC. By establishing Central Gauteng as a global city, the region would be empowered to take greater control over its economic destiny. The path this development would, by necessity take, is the promotion of the locality as the 'Gateway to Africa'. Based on this orientation several development planning proposals are presented. / Andrew Chakane 2019

The purpose of this thesis is to investigate what relation house prices have with regional migration in Sweden, with the interest of the study being to investigate how regional migration is affected by differentials in house prices and to see how it has affected migration choices for labor, and, to see if this relationship differed in 2007 and 2017. Theories surrounding regional house prices, regional migration, regional labor mobility, commuting, and accessibility are used to lay the foundation and support the empirical method. The regressions are run using cross-sectional data for the years 2007 and 2017. Whilst the literature review suggests that average house prices should have a negative relation towards in-migration, the conducted regression showcases a positive relation towards in-migration. Furthermore, the study concludes that there are many different variables that can affect regional migration. The results show that the effect of house prices has become weaker in the year 2017 compared to 2007, which could showcase that individuals have changed how they approach migration decision.

A maior integração econômica ocorrida nas últimas décadas, principalmente decorrente da fragmentação do processo produtivo, tornou indispensável a análise da região em um contexto territorialmente mais amplo. Consequentemente, os modelos inter-regionais de insumoproduto, capazes de incorporar à análise aspectos de interdependência regional, ganharam muita relevância. No entanto, a escassez de dados primários para a construção desses modelos impôs a necessidade da estimação de algumas informações que usualmente não estão disponíveis. Desta forma, decorrente das diferentes combinações das técnicas de estimação existentes, sistemas inter-regionais de insumo-produto, para um mesmo conjunto de regiões, em um mesmo ano, podem ser diferentes em termos partitivos e holísticos. Diante do exposto, a presente tese tem como objetivo avaliar como a escolha do método, na estimação dos sistemas inter-regionais, pode influenciar os resultados da análise de insumo-produto, em contextos nacionais e subnacionais. Para isso, inicialmente, são estimados dois sistemas interestaduais de insumo-produto para as 27 UFs brasileiras, utilizando dois dos principais métodos presentes na literatura nacional, o Interregional Input-Output Adjustment System - IIOAS e o Tabela de Usos e Produção Inter-regionais - TUPI. Em seguida, os dois sistemas são comparados. Mesmo apresentando diferenças partitivas significativas, os dois métodos aprestaram bastante acurácia holística, de maneira que a utilização do IIOAS ou o TUPI na estimação do sistema interregional para as 27 UFs brasileiras não compromete, de forma geral, os resultados da análise de insumo-produto. No entanto, para estudos específicos, que envolvam um determinado setor ou uma determinada região, principalmente se esta estiver no Norte do Brasil, é preciso que o analista esteja atento às possíveis variações observadas no presente estudo. Posteriormente, foram descritos e comparados dois dos principais sistemas globais de insumo-produto, o Intercountry Input-Output Model - ICIO - da OCDE e a World Input-Output Table - WIOT - da WIOD. Semelhante ao que ocorreu com os sistemas subnacionais, a baixa acurácia partitiva entre os valores estimados pelo ICIO e a WIOT não se converteu em baixa acurácia holística, isto é, não comprometeu os resultados da análise de insumo-produto para a grande maioria dos países. No entanto, quando se trata de uma análise específica para alguns países como Malta, Chipre, Lituânia e Luxemburgo, e/ou alguns setores, principalmente os de serviços, é preciso ter em conta alguns apontamentos feitos neste estudo. Ao considerarem-se os resultados para modelos globais e subnacionais de forma conjunta, conclui-se que uma política pública orientada por qualquer um dos sistemas aqui estimados não será comprometida. No entanto, esta pesquisa abordou apenas alguns dos principais métodos disponíveis para a construção de modelos inter-regionais de insumo-produto. Um possível desdobramento é a inclusão de outros métodos no processo de comparação, no intuito de corroborar ainda mais a literatura acerca da importância da escolha do método. / The fragmentation of the productive process led to a greater economic integration in the last decades, making it indispensable to analyze the region in a wider territorial context. Consequently, the interregional input-output models have gained relevance due to their incorporating aspects of regional interdependence. However, the scarcity of survey data required for the construction of these models, compelled the use of non-survey techniques to estimate non-available information. Because of various possible combinations of non-survey techniques, interregional input-output systems for the same set of regions in the same year may be different in partitive and holistic terms. Thus, this thesis aims to evaluate how the choice among different interregional systems estimation methods can influence the results of inputoutput analysis in national and subnational approaches. Initially, two interstate input-output systems are estimated for the 27 Brazilian UFs, using two of the main methods in the Brazilian literature, the Interregional Input-Output Adjustment System (IIOAS) and the Supply and Use Interregional Tables (TUPI). When comparing these two systems, even with expressive differences in partitive terms, they presented a high holistic accuracy. Therefore, the use of IIOAS or TUPI to build an interregional system for the 27 Brazilian UFs does not compromise the results of the input-output analysis. Nonetheless, for specific studies that involve a specific sector or region, the analyst must be aware of the possible variations observed in this study, especially if they are in the North of Brazil. Subsequently, two of the most important global input-output systems, Intercountry Input-Output Model (ICIO) from OECD and the World Input-Output Table (WIOT) from WIOD were described and compared. Like IIOAS and TUPI, the low partitive accuracy between systems estimated from ICIO and WIOT did not turn into a low holistic accuracy, i.e., it did not compromise the results of the input-output analysis for most countries. However, when it comes to a specific analysis for some countries such as Malta, Cyprus, Lithuania and Luxembourg and/or some sectors, especially service sectors, it is necessary to consider some remarks pointed out in this study. Considering the results for global and subnational models, it is concluded that, in a general way, the use of any system here estimated would not compromise public policies. Nevertheless, this research addressed just some of the main available interregional input-output estimation methods. A possible future development of this study would be the inclusion of other methods in the comparison process, to further support the literature about the importance of the method.

O objetivo desta tese é analisar o processo de ocupação do Grande Cerrado do Brasil Central no que diz respeito à economia e à geopolítica. Avaliam-se alguns aspectos físico-naturais fundamentais para a interpretação deste processo, procurando mostrar a diversidade do Cerrado brasileiro e as implicações desta diversidade sobre a agricultura, especialmente a aptidão agrícola. Discorre-se sobre aspectos da história da ocupação da região Central do Brasil, procurando chamar a atenção para os pontos históricos que marcaram a formação territorial regional. Resgata-se a influência da geopolítica e traça-se um paralelo entre as diversas políticas públicas e as suas implicações sobre o território. Discute-se a construção de Brasília, resgatando os seus antecedentes históricos e o que sua construção representou para o crescimento da região. Analisam-se alguns dos determinantes da ocupação recente do Cerrado brasileiro - dos anos 1960 até os dias atuais. Para isso, resgata-se o processo de modernização da agricultura brasileira e os principais instrumentos de política utilizados para que a agricultura brasileira entrasse em uma nova fase, dentre os quais a criação do Sistema Nacional de Crédito Rural (SNCR) e os programas de incentivo à incorporação produtiva do Cerrado, como o Polocentro e o Prodecer, além daqueles voltados para a abertura de estradas e a colonização pública e privada. Traça-se um panorama da estrutura produtiva da região, a partir de 1975, com destaque para os principais produtos agropecuários (arroz, feijão, soja, milho, algodão e boi) e a agroindústria, buscando identificar as áreas para onde se dirigiu a produção. Resgata-se o mapa de aptidão agrícola e é analisada a coerência entre as áreas para onde a produção se expandiu e aquelas que têm melhor aptidão agrícola. Analisa-se, ainda, o binômio soja-boi e a conformação do complexo grãos-carne em parte da região. Busca-se caracterizar a agroindústria com ênfase na indústria frigorífica, na indústria processadora de soja e no setor sucroalcooleiro. Em seguida, analisa-se o crescimento populacional e a constituição da malha urbana da região. Discute-se a importância da cidade no processo de desenvolvimento regional e apontam-se os principais trabalhos sobre o tema desenvolvidos no Brasil. Procura-se mostrar que o crescimento da região foi muito diferenciado inter-regionalmente, o que deu origem a uma malha urbana diferenciada segundo sua função. Mostra-se ainda que o crescimento populacional nas últimas três décadas ocorreu ao longo dos principais eixos de transporte da região. Conclui-se que o meio natural influi sobre o processo de localização das atividades agropecuárias e suscita o debate acerca da necessidade de industrialização da região para que a mesma possa manter seu patamar de desenvolvimento e crescimento. Mostra-se que, diferentemente do que o censo comum supõe, o Cerrado é heterogêneo e seu desenvolvimento vem gerando disparidades regionais significativas - áreas muito desenvolvidas e áreas muito atrasadas -, cujo resultado pode ser verificado em alguma medida por meio da análise da rede urbana da região. / This thesis aims at analyzing the occupation of the Grande Cerrado do Brasil Central the great Brazilian woodland-savanna) as to its economic and geopolitical aspects. It analyzes some basic physiconatural aspects for understanding such a process, aiming at showing the Brazilian Cerrado\'s diversity and its implications on agriculture, chiefly on its agricultural ability. It also includes the historical aspects of the occupation of Central Brazil viewing to focalize historical places that have influenced the formation of this regional territory. The influence of geopolitics is recovered and a parallel is made between the several public policies and their implication on the territory. It also discusses the construction of Brasilia by tracing its historical antecedents and by attempting to understand what its role in regional growth. The study analyzes some determinants of the recently occupied Brazilian Cerrado - since the 1960s. For this, it focuses on modernization of the Brazilian agriculture as well as the major specific policy tools employed so as to enable agriculture to enter a new stage. Among such tools, the Sistema Nacional de Crédito Rural - SNCR (national system of rural credit) and programs designed to incorporate the Cerrado into the productive effort, such as Polocentro and Prodecer, were implemented, in addition to those viewing the opening of new roads and public and private colonization. A panorama of the regional productive structure since 1975 is depicted, emphasizing the major agricultural products (rice, beans, soy beans, corn, and bovine livestock) and agroindustry as well, in an attempt to identify those areas where production has been directed to. An agriculture vocational map is traced and the coherence between the areas to where production has been expanded and those better inclined to agriculture is analyzed. Furthermore, the work also analyzes the soy-cattle dual production and the configuration of the grain-meat complex in an area of the region. It also attempts to characterize agroindustry, with emphasis on the slaughter industry and soy processing industry, and on the sugar and alcohol industry as well. Then it analyzes population growth and the constitution of the urban network in the region; the relevance of the urban center in the regional development and finally; mainstream studies on the subject developed in Brazil are shown. It also attempts to show that regional growth has been much differentiated inter-regionally speaking, which has in turn given birth to a differentiated urban network contingent on its function. It also shows that population growth has emerged along the main transport axes within the region during the last three decades. A conclusion has been drawn that natural environment affects localization of agricultural activities and stimulates the debate on the need for regional industrialization so as to enable the region to keep its development and growth levels. Differently from common sense, however, the study shows that the Cerrado is heterogeneous and its development has been provoking significant regional inequalities - some well-developed areas together with lagging ones -, the outcome of which could be verified, in some measure, by means of an analysis of the regional urban network

O objetivo desta tese é apresentar um conjunto de evidências empíricas relacionadas à política monetária e à atuação do sistema bancário no Brasil. O estudo é organizado na forma de três ensaios independentes, em uma abordagem que busca incorporar um conjunto de informações desagregado para estados e municípios brasileiros. No primeiro ensaio, é explorada a relação entre o sistema financeiro e o desenvolvimento econômico no Brasil, à luz de uma ampla literatura que destaca o papel dos intermediários financeiros na redução dos custos de transação e de informação no financiamento de novos investimentos. Para tratar desta questão, é aplicada uma generalização do teste Granger e Huang (1997) para a causalidade entre a evolução dos sistemas bancários e o nível de renda em um painel com os estados brasileiros. Os resultados mostram haver evidência de causalidade unidirecional dos indicadores bancários utilizados para o nível de renda estadual. O segundo ensaio analisa os efeitos de choques de política monetária nos estados brasileiros. Dois problemas têm de ser enfrentados neste contexto: a questão da identificação de choques comuns e o da dimensionalidade, associado ao fato de termos de estimar um sistema com um grande número de variáveis. Estas dificuldades são enfrentadas com a utilização do Modelo de Fatores Dinâmicos Generalizado proposto por Forni, Hallin, Lippi e Reichlin (2000), (2004), que permite uma modelagem mais parcimoniosa para os choques comuns da economia. Os resultados mostram que parece haver evidência de assimetrias nos efeitos deste choque comum, de forma consistente com a existência de um canal de crédito ativo nas economias mais atingidas por ele. Por fim, o terceiro artigo visa apresentar uma caracterização do sistema bancário brasileiro, por meio de dois indicadores bancários inéditos propostos neste trabalho, inspirados na literatura de Organização Industrial e Economia do Trabalho. A primeira medida, denotada turbulência bancária, sintetizaria o grau de intermediação bancária em uma dada localidade, enquanto que a absorção líquida de recursos captaria a primazia das atividades direcionadas para a captação, em contrapartida aos empréstimos de recursos. Dados bancários municipais são utilizados em uma abordagem econométrica, em que a dependência espacial entre as localidades é modelada explicitamente. Os resultados obtidos permitem correlacionar positivamente a turbulência bancária com, principalmente, o nível de renda e a competição bancária prevalecente nas localidades analisadas. A absorção líquida de recursos, por sua vez, é maior em localidades mais pobres e com menor competição bancária. / The aim of this thesis is to present a set of empirical evidence about the monetary policy and the banking system performance in Brazil. The study is organized in the form of three independent essays that have in common the utilization of a set of disaggregated information related to the Brazilian States and Municipalities. The first essay explores the relationship between the financial system and economic development in Brazil using the literature that has stressed the role of financial intermediaries in the amelioration of informational and transactions costs associated to investments? financing operations. A generalization of Granger and Huang (1997) test is proposed to check the causality between the evolution of banking system and the income level in a panel with the Brazilian States. The results show the evidence of unidirectional causality from banking indicators to state income levels. The second essay analyses the effects of monetary policy shocks in the Brazilian States. Two potential problems have to be addressed: the identification of common shocks and the high dimensionality of the system with a large number of variables. We apply the Generalized Dynamic Common Factor Model [Forni, Hallin, Lippi and Reichlin (2000), (2004)] that allows for a parsimonious modeling to the economic common shocks. The estimated impulseresponse functions support the hypothesis of asymmetries in the effects of the estimated common shock. Furthermore, the ordering for the State responses is consistent with the presence of an active credit channel in the regions more sensitive to the monetary policy shock. Finally, the third article presents a characterization of the Brazilian banking system through two banking indicators proposed in this work. The first measure is termed banking turbulence and it summarizes the degree of banking intermediation in a given locality, whereas the second measure is termed liquid absorption of resources and it represents the efforts in the deposits operations compared to the loans activities. Banking data on the Brazilian Municipalities is used in an econometric approach that explicitly takes the spatial dependence between the localities into account. The results allow us to correlate the banking turbulence with the income level and the banking competition in the localities. The liquid absorption of resources is more prominent in localities with lower income levels and less banking competition.