IDEAS home Printed from https://ideas.repec.org/a/sae/ecdequ/v23y2009i3p229-241.html
   My bibliography  Save this article

Rural Economic Development in the United States

Author

Listed:
  • Janna Johnson

    (University of Chicago, jannaj@uchicago.edu)

Abstract

The U.S. Department of Agriculture's Business and Industry (B&I) Guaranteed Loan Program guarantees loans made by rural banks to rural businesses. The author evaluates B&I's effectiveness in increasing employment using basic ordinary least squares (OLS) and propensity score matching models. The author finds a robust association between loan reception and increased employment growth. A loan of $1,000 per capita is accompanied by a 3% to 6% increase in employment-per-capita growth and a 3% to 5% decrease in earnings-per-worker growth over the 2 years after the loan, leaving the effect on total county earnings indeterminate. The author concludes that the B&I loan program subsidizes loans associated with increased employment growth, although the jobs created are lower paying than average.

Suggested Citation

  • Janna Johnson, 2009. "Rural Economic Development in the United States," Economic Development Quarterly, , vol. 23(3), pages 229-241, August.
    • Handle: RePEc:sae:ecdequ:v:23:y:2009:i:3:p:229-241
    DOI: 10.1177/0891242408331026
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0891242408331026
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0891242408331026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Papke, Leslie E., 1994. "Tax policy and urban development : Evidence from the Indiana enterprise zone program," Journal of Public Economics, Elsevier, vol. 54(1), pages 37-49, May.
    2. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle.
    3. Timothy J. Bartik, 2004. "Evaluating the Impacts of Local Economic Development Policies on Local Economic Outcomes: What Has Been Done and What Is Doable?," Book chapters authored by Upjohn Institute researchers, in: Evaluating Local Economic and Employment Development: How to Access Waht Works Among Programmes and Policies, pages 113-142, W.E. Upjohn Institute for Employment Research.
    4. Timothy J. Bartik & Richard D. Bingham, 1997. "Can Economic Development Programs be Evaluated?," Book chapters authored by Upjohn Institute researchers, in: Richard D. Bingham & Robert Mier (ed.),Dilemmas of Urban Economic Development, pages 246-290, W.E. Upjohn Institute for Employment Research.
    5. Guido W. Imbens, 2004. "Nonparametric Estimation of Average Treatment Effects Under Exogeneity: A Review," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 4-29, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Goetz, Stephan J. & Partridge, Mark D. & Deller, Steven C. & Fleming, David A., 2010. "Evaluating U.S. Rural Entrepreneurship Policy," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(1), pages 1-14.
    2. Tessa Conroy & Sarah A. Low & Stephan Weiler, 2017. "Fueling Job Engines: Impacts Of Small Business Loans On Establishment Births In Metropolitan And Nonmetro Counties," Contemporary Economic Policy, Western Economic Association International, vol. 35(3), pages 578-595, July.
    3. Yanling Peng & Yuansheng Jiang & Yu Hong, 2022. "Heterogeneous Preferences for Selecting Attributes of Farmland Management Right Mortgages in Western China: A Demand Perspective," Land, MDPI, vol. 11(8), pages 1-14, July.
    4. Juan Tomas Sayago-Gomez & Gianfranco Piras & Donald Lacombe & Randall Jackson, 2015. "Impact Evaluation of Investments in the Appalachian Region: A Reappraisal," Working Papers Working Paper 2015-06, Regional Research Institute, West Virginia University.
    5. Low, Sarah A., 2017. "Rural Manufacturing Resilience: Factors Associated With Plant Survival, 1996-2011," Economic Research Report 262184, United States Department of Agriculture, Economic Research Service.
    6. Hongguang Zheng & Zhanbin Zhang, 2021. "Analyzing Characteristics and Implications of the Mortgage Default of Agricultural Land Management Rights in Recent China Based on 724 Court Decisions," Land, MDPI, vol. 10(7), pages 1-16, July.
    7. Peng, Yanling & Ren, Yanjun & Zhong, Yu & Jiang, Yuansheng, 2022. "Farmers’ Heterogeneous Preferences for Selecting Attributes of Farmland Management Right Mortgages: Evidence from Western China," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322408, Agricultural and Applied Economics Association.
    8. Josh Matti, 2019. "The Political Economy of the U.S. Department of Agriculture Rural Business-Cooperative Service," Economic Development Quarterly, , vol. 33(3), pages 203-211, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Patrick Kline & Enrico Moretti, 2014. "People, Places, and Public Policy: Some Simple Welfare Economics of Local Economic Development Programs," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 629-662, August.
    2. Daniele Bondonio, 2003. "Do Tax Incentives Affect Local Economic Growth? What Mean Impacts Miss in the Analysis of Enterprise Zone Policies," Working Papers 03-17, Center for Economic Studies, U.S. Census Bureau.
    3. Moretti, Enrico, 2011. "Local Labor Markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 14, pages 1237-1313, Elsevier.
    4. Matias Busso & Patrick Kline, 2008. "Do Local Economic Development Programs Work? Evidence from the Federal Empowerment Zone Program," Cowles Foundation Discussion Papers 1639, Cowles Foundation for Research in Economics, Yale University.
    5. Timothy J. Bartik, 2003. "Local Economic Development Policies," Upjohn Working Papers 03-91, W.E. Upjohn Institute for Employment Research.
    6. Bondonio, Daniele & Engberg, John, 2000. "Enterprise zones and local employment: evidence from the states' programs," Regional Science and Urban Economics, Elsevier, vol. 30(5), pages 519-549, September.
    7. Naguib, Costanza, 2019. "Estimating the Heterogeneous Impact of the Free Movement of Persons on Relative Wage Mobility," Economics Working Paper Series 1903, University of St. Gallen, School of Economics and Political Science.
    8. Gibbons, Stephen & Overman, Henry & Sarvimäki, Matti, 2021. "The local economic impacts of regeneration projects: Evidence from UK's single regeneration budget," Journal of Urban Economics, Elsevier, vol. 122(C).
    9. Krupka, Douglas J. & Noonan, Douglas S., 2009. "Empowerment Zones, neighborhood change and owner-occupied housing," Regional Science and Urban Economics, Elsevier, vol. 39(4), pages 386-396, July.
    10. Sumei Zhang, 2015. "Impacts of Enterprise Zone Policy on Industry Growth," Economic Development Quarterly, , vol. 29(4), pages 347-362, November.
    11. Raphael W. Bostic & Allen C. Prohofsky, 2006. "Enterprise Zones and Individual Welfare: A Case Study of California," Journal of Regional Science, Wiley Blackwell, vol. 46(2), pages 175-203, May.
    12. Kala Seetharam Sridhar, 2005. "Benefits and Costs of Regional Development: Evidence from Ohio’s Enterprise Zone Programme," Palgrave Macmillan Books, in: Incentives for Regional Development, chapter 5, pages 87-114, Palgrave Macmillan.
    13. Moretti, Enrico & Wilson, Daniel J., 2014. "State incentives for innovation, star scientists and jobs: Evidence from biotech," Journal of Urban Economics, Elsevier, vol. 79(C), pages 20-38.
    14. William Hoyt & Christopher Jepsen & Kenneth Troske, 2009. "Business Incentives and Employment: What Incentives Work and Where?," Working Papers 2009-02, University of Kentucky, Institute for Federalism and Intergovernmental Relations.
    15. Carlianne Patrick & Amanda Ross & Heather Stephens, 2016. "Designing Policies to Spur Economic Growth: How Regional Scientists Can Contribute to Future Policy Development and Evaluation," Working Papers 16-04, Department of Economics, West Virginia University.
    16. Christine Ryan & John Wilson & William Fulton, 2003. "The Impact of Urban Growth Boundaries on Future Urbanization," Working Paper 8610, USC Lusk Center for Real Estate.
    17. Fei, Fan & Hines, James R. & Horwitz, Jill R., 2016. "Are PILOTs property taxes for nonprofits?," Journal of Urban Economics, Elsevier, vol. 94(C), pages 109-123.
    18. Braid, Ralph M., 2009. "The employment effects of a central city's source-based wage tax or hybrid wage tax," Regional Science and Urban Economics, Elsevier, vol. 39(4), pages 512-521, July.
    19. Jasper Beekmans & Huub Ploegmakers & Karel Martens & Erwin van der Krabben, 2016. "Countering decline of industrial sites: Do local economic development policies target the neediest places?," Urban Studies, Urban Studies Journal Limited, vol. 53(14), pages 3027-3047, November.
    20. Overman, Henry & Einiö, Elias, 2016. "The (Displacement) Effects of Spatially Targeted Enterprise Initiatives: Evidence from UK LEGI," CEPR Discussion Papers 11112, C.E.P.R. Discussion Papers.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ecdequ:v:23:y:2009:i:3:p:229-241. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.