An Economic Growth Comparison of Substate Economies in Massachusetts

In the current economy, states and substate regions seek to identify the sources of economic growth in order to improve economic development efforts.  The objectives of the paper are threefold.  First, using selected economic criteria, we examine the growth in the labor force in different substate regions.  Second, using selected economic indicators, we detect the existence of growth in employment, establishments, payroll and wages in the substate regions.  Finally, we explore the causal relationship among selected economic variables in different substate regions and determine the direction of causality between variables.  Several techniques and analyses are used in this study, including labor force analysis, location quotients, and the error correction model. The results of this research are used to compare economic growth among regions and facilitate regional economic development efforts.