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Talent vs. Trade in Regional Economic Development

September 11, 2012

Talent vs. Trade in Regional Economic Development

Source: Martin Prosperity Institute

Talent and trade are two key factors in regional economic development. But little research directly compares the comparative influence of the two. This research employs multivariate regression models to examine the independent and combined effects of these talent and tradable sectors on three measures of regional development: productivity (economic output per capita), wages, and innovation (patents per employee). Talent is measured as educational attainment and the regional share of knowledge-based occupations; trade is measured as traded industry employment shares. The findings indicate that talent has considerably more explanatory power than trade in accounting for regional economic performance.

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