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Do Manufacturing Plants Cluster Across Rural Areas? Evidence From A Probabilistic Modeling Approach

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  • Barkley, David L.
  • Kim, Yunsoo
  • Henry, Mark S.
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    Abstract

    A statistical procedure for detecting "contagious" location patterns for manufacturing establishments is presented. Manufacturing industries' establishment clustering tendencies are ranked based on the "dispersion parameter" of the negative binomial distribution. Establishment data are for three-digit SIC manufacturing industries, nonmetro counties of BEA Component Economic Areas, 1981 and 1992. Findings indicate that virtually all manufacturing industries cluster establishments in nonmetro areas. Approximately two-thirds of the industries had dispersion parameters indicating a high or moderate level of spatial concentration. The propensity to cluster plants in nonmetro CEAs was evident for both 1981 and 1992, though weaker in 1992. Much of the industry clustering in nonmetro areas appears to be attributable to local "natural advantages" and not to inter-firm spillovers.

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    Bibliographic Info

    Paper provided by Clemson University, Regional Economic Development Research Laboratory (REDRL) in its series REDRL Research Reports with number 18796.

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    Date of creation: 2001
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    Handle: RePEc:ags:curerr:18796

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    Postal: Clemson, SC 29634-0355
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    Keywords: Community/Rural/Urban Development;

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    1. James E. Rauch, 1991. "Productivity Gains From Geographic Concentration of human Capital: Evidence From the Cities," NBER Working Papers 3905, National Bureau of Economic Research, Inc.
    2. Guy Dumais & Glenn Ellison & Edward L Glaeser, 1998. "Geographic Concentration as a Dynamic Process," Working Papers 98-3, Center for Economic Studies, U.S. Census Bureau.
    3. Henderson, J. Vernon, 1986. "Efficiency of resource usage and city size," Journal of Urban Economics, Elsevier, vol. 19(1), pages 47-70, January.
    4. J. Vernon Henderson, 1994. "Externalities and Industrial Development," NBER Working Papers 4730, National Bureau of Economic Research, Inc.
    5. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
    6. 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.
    7. Antonio Ciccone & Robert E. Hall, 1995. "Productivity and the density of economic activity," Economics Working Papers 120, Department of Economics and Business, Universitat Pompeu Fabra.
    8. Mark Henry & Mark Drabenstott, 1996. "A new micro view of the U.S. rural economy," Economic Review, Federal Reserve Bank of Kansas City, issue Q II, pages 53-70.
    9. Mark D. Partridge & Dan S. Rickman, 1999. "Static and Dynamic Externalities, Industry Composition, and State Labor Productivity: A Panel Study of States," Southern Economic Journal, Southern Economic Association, vol. 66(2), pages 319-335, October.
    10. Palivos, Theodore & Wang, Ping, 1996. "Spatial agglomeration and endogenous growth," Regional Science and Urban Economics, Elsevier, vol. 26(6), pages 645-669, December.
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