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Manufacturing and Rural Economies in the United States: The Role of Nondurable Producers, Labor Costs and State Taxes

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  • Mark Jelavich

Abstract

This paper investigates the preferences of manufacturers in deciding whether to locate in metropolitan or nonmetropolitan (rural) areas. Using 1997 state‐level data and OLS regression estimation, it was determined that nondurable goods manufacturers prefer rural areas, while durable goods manufacturers are indifferent as to area. However, both sets of manufacturers prefer to locate in larger states. Wage rates are not significant in the regressions, while durable manufacturers appear sensitive to state taxes. Some policy conclusions for local economic developers are derived from these findings.

Suggested Citation

  • Mark Jelavich, 2001. "Manufacturing and Rural Economies in the United States: The Role of Nondurable Producers, Labor Costs and State Taxes," American Journal of Economics and Sociology, Wiley Blackwell, vol. 60(1), pages 185-192, January.
    • Handle: RePEc:bla:ajecsc:v:60:y:2001:i:1:p:185-192
    DOI: 10.1111/1536-7150.00060
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    Cited by:

    1. Peter V. Schaeffer & Mulugeta S. Kahsai & Randall W. Jackson, 2013. "Beyond the Rural–Urban Dichotomy," International Regional Science Review, , vol. 36(1), pages 81-96, January.

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