Federal Defense Spending and Metropolitan and Nonmetropolitan Disparities in Economic Growth in the Southeast
In: Social science quarterly, Band 85, Heft 2, S. 324-339
ISSN: 0038-4941
Objective. This study examines how defense spending in the 1980s & early 1990s affected economic growth in metropolitan & nonmetropolitan counties in the Southeast. Methods. Using county-level census & other government data, the study employs a spatial lag regression model to predict how defense spending interacts with manufacturing growth to affect county economic growth during the business cycles of the 1980s & early 1990s, while controlling for other measures of regional processes. I supplement the regression analysis with brief case studies of 5 counties. Results. The analysis shows that there is a positive interaction effect between federal defense spending & manufacturing growth on measures of income & employment growth. However, the interaction effects are much stronger & more consistent in metropolitan counties. Conclusion. As predicted, defense spending created regional variations in economic growth across the metropolitan-nonmetropolitan divide in the southeast during the business cycles of the 1980s & early 1990s. Moreover, documented economic growth in nonmetropolitan counties is partly a function of spatial integration with metropolitan counties. The results have implications for current trends in defense spending. 3 Tables, 45 References. Adapted from the source document.