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The effects of a la...
The effects of a large industrial investment on employment in a remote and sparsely populated area using a synthetic control approach
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- Adjei, Evans Korang (författare)
- Umeå universitet,Centrum för regionalvetenskap (CERUM),Institutionen för geografi
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- Eriksson, Rikard, 1979- (författare)
- Umeå universitet,Institutionen för geografi,Centrum för regionalvetenskap (CERUM)
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- Lundberg, Johan, 1966- (författare)
- Umeå universitet,Nationalekonomi,Centrum för regionalvetenskap (CERUM),Department of Economics and Centre for Regional Science (CERUM) Umeå University
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(creator_code:org_t)
- John Wiley & Sons, 2023
- 2023
- Engelska.
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Ingår i: Regional Science Policy & Practice. - : John Wiley & Sons. - 1757-7802. ; 15:7, s. 1553-1576
- Relaterad länk:
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https://doi.org/10.1...
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https://umu.diva-por... (primary) (Raw object)
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https://urn.kb.se/re...
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https://doi.org/10.1...
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Abstract
Ämnesord
Stäng
- This article examines the impact of establishing a large industrial manufacturing entity on employment and the labor market in a remote, sparsely populated part of Sweden, focusing on how it affects total regional employment because industrial policies aiming to attract investment and reignite employment in stagnating regions have been a central policy tool. The empirical analysis is based on the synthetic control method, which enables the estimation of place-specific causal effects. Using aggregated microdata from 1995 to 2019, the results indicate that employment in the treated region, as compared to synthetic regions, has been negatively affected by the manufacturing establishment. However, the short- and long-term effects differ across different labor market segments (same, related, and unrelated industries) and according to firm size. Overall, the findings suggest that large manufacturing investment does not necessarily have a positive or instantaneous impact on total regional employment. It does, however, provide some potential for long-term diversification because employment in related activities grows in the long run.
Ämnesord
- SAMHÄLLSVETENSKAP -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)
- SOCIAL SCIENCES -- Economics and Business -- Economics (hsv//eng)
Nyckelord
- employment
- large industrial investment
- remote and sparsely populated areas
- synthetic control method
- nationalekonomi
- Economics
Publikations- och innehållstyp
- ref (ämneskategori)
- art (ämneskategori)
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