Tennessee and Kansas Industrial Diversity Analysis: A Case for Economic Development
- AIOR Admin
- May 21
- 1 min read
Ejiro U Osiobe, Sajid Al Noor, Safia A. Malallah, Rauf I. Rauf, Waleed A. Hammood
Ane Osiobe International Foundation (USA), Tennessee State University (USA), Kansas State University (USA), University of Abuja (Nigeria), University of Anbar (Iraq)
Understanding regional economic resilience and structural dynamics is essential for informing effective development policies, especially in an increasingly volatile global economy. This study aims to comparatively examine the industrial diversity of Tennessee and Kansas over the period 2010 to 2022, with the objective of assessing how diversified or concentrated their economies are relative to national benchmarks and internal distributions. Using employment data sourced from the United States Census Bureau and Bureau of Labor Statistics, the research applies three established indices: the Hachman Index to measure industrial similarity with the national economy, the Herfindahl-Hirschman Index (HHI) to assess market concentration, and the Shannon Entropy Index to evaluate the evenness of employment distribution across industries. The results show that Tennessee consistently exhibits greater industrial diversity than Kansas across all three indices, indicating a more balanced and resilient economic structure. Both states demonstrate minor downward trends over time, suggesting a modest shift toward increased industrial concentration. The findings conclude that Tennessee's closer alignment with national industry patterns and lower concentration levels position it as the more economically diverse of the two states. It is recommended that regional policymakers, especially in Kansas, adopt integrated diversification strategies that strengthen industrial balance, enhance resilience to external shocks, and support long-term sustainable growth through data-driven planning and targeted economic interventions.
Comentarios