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Agribusiness firms: Location determinants and economic contribution

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  • F. Larry Leistritz

    (Agricultural Economics at North Dakota State University, Fargo)

Abstract

This article assesses factors influencing the location of agribusiness firms and evaluates their economic contribution to the local economy vis-a-vis other types of firms. Data are from a survey of 297 basic-sector firms (70 of which were agribusiness) in the Upper Midwest region. Factors affecting location decisions were found to differ significantly, both between agribusinesses and other firms and among agribusinesses of different types (e.g., food processors vs. farm machinery manufacturers). Agribusinesses employed fewer workers directly, but through their higher level of in-state purchases, they generated greater secondary (multiplier) effects. © 1992 John Wiley & Sons, Inc.

Suggested Citation

  • F. Larry Leistritz, 1992. "Agribusiness firms: Location determinants and economic contribution," Agribusiness, John Wiley & Sons, Ltd., vol. 8(4), pages 273-286.
    • Handle: RePEc:wly:agribz:v:8:y:1992:i:4:p:273-286
    DOI: 10.1002/1520-6297(199207)8:4<273::AID-AGR2720080402>3.0.CO;2-E
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    References listed on IDEAS

    as
    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. John P. Blair & Robert Premus, 1987. "Major Factors in Industrial Location: A Review," Economic Development Quarterly, , vol. 1(1), pages 72-85, February.
    3. Steven J. Torok & Alan Schroeder & Dale J. Menkhaus, 1991. "Analysis of problems and barriers of small food and kindred products processors," Agribusiness, John Wiley & Sons, Ltd., vol. 7(4), pages 311-325.
    4. 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 440-449, August.
    5. Alan Barkema & Mark Drabenstott & Julie A. Stanley, 1990. "Processing food in farm states: an economic development strategy for the 1990s," Economic Review, Federal Reserve Bank of Kansas City, vol. 75(Jul), pages 5-23.
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    Cited by:

    1. Mônica A. Haddad & Gary Taylor & Francis Owusu, 2010. "Locational Choices of the Ethanol Industry in the Midwest Corn Belt," Economic Development Quarterly, , vol. 24(1), pages 74-86, February.
    2. repec:rre:publsh:v:36:y:2006:i:2:p:140-62 is not listed on IDEAS
    3. Marc Vesecky & David Lins, 1995. "Factors influencing expansion and contraction decisions by Illinois agribusiness firms," Agribusiness, John Wiley & Sons, Ltd., vol. 11(5), pages 405-413.
    4. Y. Mechouar & Vincent Hovelaque & Carl Gaigne, 2022. "Effect of raw material substitution on the facility location decision under a carbon tax policy," Post-Print halshs-03517835, HAL.
    5. Chris Barfels & Mike A. Singer, 1996. "The food manufacturing industry in the Midwest," Assessing the Midwest Economy RE-6, Federal Reserve Bank of Chicago.
    6. Youcef MECHOUAR & V Hovelaque & C Gaigné, 2021. "Effect of raw material substitution on the facility location decision under a carbon tax policy," Post-Print hal-04155066, HAL.

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