An Interregional Econometric Model for Market Services Employment in 120 EEC Regions

Abstract

We present a complete set of data of employment and value-added at 6 sectors classification, calculated having into account OECD National Accounts, regional data from Eurostat and our own estimations when necessary for former EEC12 countries, for the years. We fit and analyze an interregional econometric model for market services employment in 120 EEC regions in the year 1985 and compare its results with another models estimated for the period 1985-98. Our main conclusion is that value-added in industry and non-market sectors are the most important explanatory variables with positive impact on the increase of value-added and employment of the market services sector, and thus we think that European Union should try to help the increase of these factors in the regions under average. This recommendation is specially interesting before the forthcoming expansions of European Union after 2002.Employment; Europe; Models