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The Location Of Food Manufacturing Plant Investments In Corn Belt Counties

  • Henderson, Jason R.
  • McNamara, Kevin T.
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    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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    Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

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

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    Handle: RePEc:ags:jlaare:30893
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    1. J. Vernon Henderson & Ari Kuncoro & Matthew Turner, 1992. "Industrial Development in Cities," NBER Working Papers 4178, National Bureau of Economic Research, Inc.
    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. 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.
    4. 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.
    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. William A. Testa, 1992. "Trends and prospects for rural manufacturing," Working Paper Series, Regional Economic Issues 92-12, Federal Reserve Bank of Chicago.
    7. Kevin T. McNamara & Warren P. Kriesel, 1988. "Manufacturing Location: the Impact of Human Capital Stocks and Flows," The Review of Regional Studies, Southern Regional Science Association, vol. 18(1), pages 42-48, Winter.
    8. 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.
    9. 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.
    10. 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.
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