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The Influence Of Location On Productivity: Manufacturing Technology In Rural And Urban Areas

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  • Sheila A Martin
  • Richard Mchugh
  • S R Johnson

Abstract

Policies to counter the growing discrepancy between economic opportunities in rural and urban areas have focused predominantly on expanding manufacturing in rural areas. Fundamental to the design of these strategies are the relative costs of production and productivity of manufacturing in rural and urban areas. This study aims to develop information that can be used to assess the productivity of manufacturing in rural and urban areas. Production functions are estimated in the meat products and household furniture industries to investigate selected aspects of the effect of rural, small urban, and metropolitan location on productivity. The results show that the effect of location on productivity varies with industry, size, and the timing of the entry of the establishment into the industry. While the analysis is specific to two industries, it suggests that development policies targeting manufacturing can be made more effective by focusing on industries and plants with characteristics that predispose them to the locations being supported.

Suggested Citation

  • Sheila A Martin & Richard Mchugh & S R Johnson, 1991. "The Influence Of Location On Productivity: Manufacturing Technology In Rural And Urban Areas," Working Papers 91-10, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:91-10
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    File URL: https://www2.census.gov/ces/wp/1991/CES-WP-91-10.pdf
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    References listed on IDEAS

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    2. Suho Bae, 2009. "The responses of manufacturing businesses to geographical differences in electricity prices," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(2), pages 453-472, June.
    3. Mark Drabenstott & Mark Henry & Kristin Mitchell, 1999. "Where have all the packing plants gone? : the new meat geography in rural America," Economic Review, Federal Reserve Bank of Kansas City, vol. 84(Q III), pages 65-82.
    4. Suho Bae, 2010. "Public Versus Private Delivery Of Municipal Solid Waste Services: The Case Of North Carolina," Contemporary Economic Policy, Western Economic Association International, vol. 28(3), pages 414-428, July.
    5. George A. Erickcek & Hannah McKinney, 2006. "“Small Cities Blues:†Looking for Growth Factors in Small and Medium-Sized Cities," Economic Development Quarterly, , vol. 20(3), pages 232-258, August.
    6. William A. Testa, 1993. "Trends and prospects for rural manufacturing," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 17(Mar), pages 27-36.
    7. Suho Bae & Moon-gi Jeong & Seong-gin Moon, 2015. "Effects of institutional arrangements in local water supply services in Korea," Papers in Regional Science, Wiley Blackwell, vol. 94(4), pages 849-868, November.

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