Higher Energy Prices and Resource Endowments in an Export Base Model Context

Abstract

This paper modifies previous work that has shown that export base employment growth is positively correlated with per capita income growth. Modifications made to the model allow researchers to distinguish between energy surplus and deficit states, sunbelt and non-sunbelt states, and pre-embargo years and post-embargo years.The model confirmed that energy surplus states experienced considerably higher export base employment and real capital expenditure growth rates in post-embargo years than energy deficit states