Industrial Filtering In A Nonmetropolitan Area Of The South

The industrial filtering hypothesis is examined, using employment data for 82 counties in Mississippi. Shift-share analysis is used to explore the underlying question of whether the industrial filtering process adequately provides a general explanation for the growth of nonmetropolitan employment and is an appropriate basis for theories of economic development. Shift calculations are produced for the period of 1969 through 1988, as well as four subperiods based upon business cycle fluctuations. Two regression models are used in an attempt to statistically test the industrial filtering hypothesis. The author concludes that the industrial filtering process does not appear to represent a satisfactory explanation for the changes in industrial employment structure within Mississippi based upon the available evidence. The author points out that the evidence is not definitive and suggests that further studies should be based upon firm-specific data.