Summer 2010, Volume V, Issue II
1. LOCATION QUOTIENTS, CLUSTERS, AND SOUTH CAROLINA INDUSTRIES, 1997-2004 Dennis S. Edwards, Robert F. Salvino, Ellen Bergsveinsdottir, Erik Horbacz, William Rosalino, and Travis Smither
This paper uses location quotients to gauge the strength of clusters in the state of South Carolina over the period 1997-2004. Cluster theory has been most advanced by Porter (1998), and we use this to illustrate strong and weak clusters in South Carolina. Additionally, this paper provides possible answers for both cluster growth (in waste remediation and automotive) and cluster atrophy (in textiles, chemicals, and overall manufacturing).
2. Convergence and the Short-Run Dynamics of Prices in a Currency Union. Lee C. Adkins, Andreas Savvides
This paper investigates the formation of prices for members of a currency union in west and central Africa, the Communaute Financiere Africane (CFA) Zone. We use fully-modfied estimation methods for nonstationary time series and panel data to establish the degree of long-run transmission between the French price level (the anchor of the CFA currency union) and the price levels of Zone members. We also investigate the short-run dynamics of Zone ination rates by estimating a multivariate error-correction model. We find a significant long-run linkage between French and Zone price levels that for most members is not significantly diverent from unity. Moreover, Zone ination rates respond significantly to the divergence of prices from their long-run equilibrium level, but the speed of adjustment is relatively slow.