An F-statistic of 6.73 indicates the equation was significant at the one percent level. In this paper, the comparative performance of economic growth as measured by Gross State Product in the Southern United States has been analyzed for the period 1982 to 1989. A dynamic shift-share analysis of GSP growth was undertaken to examine the impact of national growth, industrial structure and regional competitiveness on state growth. Among the sixteen Southern states studied, it was found that the industrial structure effect was positive in seven, while the regional competitiveness effect was positive in eight. The competitive position of each state had a sizeable effect in most cases, but the impact of the national economy tended to be larger.
Wages having a negative effect is in accordance with the literature cited earlier.
Education is likely to have a larger effect on value-added, and hence economic growth, than on employment. Taxes were found to have a statistically insignificant effect on competitiveness. Literature on the effect of taxes has been inconclusive. Previous studies have yielded different results. The insignificance of taxes in this study may be explained by the minimal differences in tax burden in the states included in the study.