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Increases in Rural Income May Not Help Smalltown Retailers

Author

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  • Henderson, David A.
  • Hines, Fred K.

Abstract

Higher incomes and increased consumer spending will not necessarily help small rural communities hang onto their retail stores. Analyzing data from 10 counties in southwest Minnesota, we traced how changes in local income affected retail sales between 1979 and 1986. Increases in income generally led to increased total spending in the larger towns of the area but lower total spending in its smaller towns. Reason? With improved income, consumers seem to be more attracted to the greater selection of goods in the larger towns.

Suggested Citation

  • Henderson, David A. & Hines, Fred K., 1990. "Increases in Rural Income May Not Help Smalltown Retailers," Rural America/ Rural Development Perspectives, United States Department of Agriculture, Economic Research Service, vol. 6(3), June.
    • Handle: RePEc:ags:uersra:310847
    DOI: 10.22004/ag.econ.310847
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    Cited by:

    1. McGurr, Paul T. & DeVaney, Sharon A., 1996. "Patterns of Retail Change: A Comparison of Metropolitan and Nonmetropolitan Counties in Indiana 1972 to 1992," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 26(2), pages 1-13.
    2. Rochin, Refugio I. & Jetter, Karen M., 1991. "The Availability and Prices of Consumer Goods and Services in Small Towns of Northern California," Information Series 251902, University of California, Davis, Giannini Foundation.

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