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Industrial diversity and economic performance in U.S. areas Export

The Annals of Regional Science, Vol. 20, No. 2. (1 July 1986), pp. 44-54.

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diversity geography growth

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It has often been suggested that economic diversity enhances economic performance, either by promoting higher levels of economic well-being or by improving the ability of regions to cushion the adverse effects of economic cycles. This is the conventional wisdom, but it has not been adequately tested. This study undertakes an investigation of the various aspects of economic diversity to determine whether support can be found for these assumptions by testing them with data from the 50 states and the District of Columbia for the ten-year period from 1972 to 1981. The results suggest that no strict assumptions should be made regarding a clear relationship between economic diversity and growth and stability of unemployment, and per capita incomebased measure of economic performance.


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