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The Location Of Food Manufacturing Plant Investments In Corn Belt Counties

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  • Henderson, Jason R.
  • McNamara, Kevin T.
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    Abstract

    Capturing value-added activity is often promoted as a rural development strategy, but this is difficult for specific communities lacking the resources to support food manufacturing activity. This study analyzes the relationship between local attributes and food manufacturing plant investments in Corn Belt counties between 1987 and 1995. Plant investment locations tend to occur in counties with access to input and product markets, developed transportation networks, agglomeration economies, favorable fiscal policies, and a low wage environment. Supply-oriented firms locate near agricultural commodities and low-cost labor. Demand-oriented firms favor locations near product markets and transportation systems.

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    File URL: http://purl.umn.edu/30893
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    Bibliographic Info

    Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

    Volume (Year): 25 (2000)
    Issue (Month): 02 (December)
    Pages:

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    Handle: RePEc:ags:jlaare:30893

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    Web page: http://waeaonline.org/
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    Related research

    Keywords: Agribusiness;

    References

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    1. Bartik, Timothy J, 1985. "Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes, and Other Characteristics of States," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(1), pages 14-22, January.
    2. Coughlin, Cletus C & Terza, Joseph V & Arromdee, Vachira, 1991. "State Characteristics and the Location of Foreign Direct Investment within the United States," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 675-83, November.
    3. hUallachain, Breandan O & Satterthwaite, Mark A., 1992. "Sectoral growth patterns at the metropolitan level: An evaluation of economic development incentives," Journal of Urban Economics, Elsevier, vol. 31(1), pages 25-58, January.
    4. Rigoberto A. Lopez & Nona R. Henderson, 1989. "The determinants of location choices for food processing plants," Agribusiness, John Wiley & Sons, Ltd., vol. 5(6), pages 619-632.
    5. Cameron, A Colin & Windmeijer, Frank A G, 1996. "R-Squared Measures for Count Data Regression Models with Applications to Health-Care Utilization," Journal of Business & Economic Statistics, American Statistical Association, vol. 14(2), pages 209-20, April.
    6. Smith, Eldon D. & Deaton, Brady J. & Kelch, David R., 1978. "Location Determinants Of Manufacturing Industry In Rural Areas," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 10(01), July.
    7. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-90, October.
    8. Carlton, Dennis W, 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 440-49, August.
    9. William A. Testa, 1992. "Trends and prospects for rural manufacturing," Working Paper Series, Regional Economic Issues 92-12, Federal Reserve Bank of Chicago.
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    Citations

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    Cited by:
    1. Lambert, Dayton M. & Brown, Jason P. & Florax, Raymond J.G.M., 2010. "A two-step estimator for a spatial lag model of counts: Theory, small sample performance and an application," Regional Science and Urban Economics, Elsevier, vol. 40(4), pages 241-252, July.
    2. Davis, David E. & Schluter, Gerald E., 2005. "Labor-Force Heterogeneity as a Source of Agglomeration Economies in an Empirical Analysis of County-Level Determinants of Food Plant Entry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(03), December.
    3. Brown, Jason & Lambert, Dayton, 2014. "Location decisions of natural gas extraction establishments: a smooth transition count model approach," Research Working Paper RWP 14-5, Federal Reserve Bank of Kansas City.
    4. Lambert, Dayton M. & Wilcox, Michael D. & English, Alicia & Stewart, Lance A., 2008. "Ethanol Plant Location Determinants and County Comparative Advantage," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(01), April.
    5. Lambert, Dayton M. & McNamara, Kevin T. & Garrett, Megan I., 2006. "An Application of Spatial Poisson Models to Manufacturing Investment Location Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(01), April.
    6. Jason P. Brown & Raymond J.G.M. Florax & Kevin T. McNamara, 2008. "Evolution Of Investment Flows In U.S. Manufacturing:A Spatial Panel Approach," Working Papers 08-06, Purdue University, College of Agriculture, Department of Agricultural Economics.
    7. Pruitt, J. Ross & Tilley, Daniel S., 2008. "Location Patterns of Confectionery Manufacturers in a Post NAFTA Environment," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6802, Southern Agricultural Economics Association.

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