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Urban-Rural Variations in the Structure of Manufacturing Production

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  • Paul R. Blackley

    (Le Moyne College, Syracuse, New York, 13214)

Abstract

This paper demonstrates that recent attempts to explain manufacturing shifts to nonmetropolitan areas can be synthesised into a capital vintage model of production. The result is a set of systematic differences between urban and rural production methods which are consistent with the locational implications of the manufacturing process cycle theory. The model is supported by the first comprehensive estimation of separate production functions for SMSAs and nonmetropolitan areas. Using Census data for the US from 1977, only SMSAs are shown to possess the significant agglomeration economies needed for product development and process innovation. Cost-competitive nonmetropolitan areas show much greater variation in input proportions due to spatial factor price differentials.

Suggested Citation

  • Paul R. Blackley, 1986. "Urban-Rural Variations in the Structure of Manufacturing Production," Urban Studies, Urban Studies Journal Limited, vol. 23(6), pages 471-483, December.
    • Handle: RePEc:sae:urbstu:v:23:y:1986:i:6:p:471-483
    DOI: 10.1080/00420988620080771
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    References listed on IDEAS

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    Cited by:

    1. James P. Miller & Herman Bluestone, 1988. "Prospects for Service Sector Employment Growth in Non-Metropolitan America," The Review of Regional Studies, Southern Regional Science Association, vol. 18(1), pages 28-41, Winter.

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