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The Location Of Food Manufacturing Plant Investments In Corn Belt Counties

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  • Henderson, Jason R.
  • McNamara, Kevin T.

Abstract

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.

Suggested Citation

  • Henderson, Jason R. & McNamara, Kevin T., 2000. "The Location Of Food Manufacturing Plant Investments In Corn Belt Counties," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-18, December.
  • Handle: RePEc:ags:jlaare:30893
    DOI: 10.22004/ag.econ.30893
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    1. Lambert, Dayton M. & McNamara, Kevin T. & Garrett, Megan I., 2006. "An Application of Spatial Poisson Models to Manufacturing Investment Location Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(1), pages 1-17, April.
    2. Davis, David E. & Schluter, Gerald E., 2005. "Labor-Force Heterogeneity as a Source of Agglomeration Economies in an Empirical Analysis of County-Level Determinants of Food Plant Entry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(3), pages 1-22, December.
    3. A. Ford Ramsey & Barry Goodwin & Mildred Haley, 2021. "Labor Dynamics and Supply Chain Disruption in Food Manufacturing," NBER Chapters, in: Risks in Agricultural Supply Chains, National Bureau of Economic Research, Inc.
    4. Wu, Wenchao, 2017. "Agglomeration Economy and Input-output Linkage: Evidence from the Entry of the Agro-food Industry in China," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 19.
    5. Lambert, D.M. & Wilcox, M. & English, A. & Stewart, L., 2008. "Ethanol Plant Location Determinants and County Comparative Advantage," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 117-135, April.
    6. 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.
    7. Jason P. Brown & Dayton M. Lambert & Raymond J. G. M. Florax, 2013. "The Birth, Death, and Persistence of Firms: Creative Destruction and the Spatial Distribution of U.S. Manufacturing Establishments, 2000–2006," Economic Geography, Clark University, vol. 89(3), pages 203-226, July.
    8. Shelley McDonough Kimelberg & Lauren A. Nicoll, 2012. "Business Location Decisions in the Medical Device Industry," Economic Development Quarterly, , vol. 26(1), pages 34-49, February.
    9. Lambert, Dayton M. & Brown, Jason P. & Florax, Raymond J.G.M., 2010. "A two-step estimator for a spatial lag model of counts: Theory, small sample performance and an application," Regional Science and Urban Economics, Elsevier, vol. 40(4), pages 241-252, July.
    10. Jason Brown & Dayton Lambert, 2014. "Location decisions of natural gas extraction establishments: a smooth transition count model approach," Research Working Paper RWP 14-5, Federal Reserve Bank of Kansas City.
    11. Dayton M. Lambert & Kevin T. McNamara, 2009. "Location determinants of food manufacturers in the United States, 2000–2004: are nonmetropolitan counties competitive?," Agricultural Economics, International Association of Agricultural Economists, vol. 40(6), pages 617-630, November.
    12. Julio C. Arteaga & Daniel Flores & Edgar Luna, 2021. "The effect of a soft drink tax in Mexico: evidence from time series industry data," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(2), pages 349-366, April.
    13. Pruitt, J. Ross & Tilley, Daniel S., 2008. "Location Patterns of Confectionery Manufacturers in a Post NAFTA Environment," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6802, Southern Agricultural Economics Association.
    14. Tingting Tong & T. Edward Yu & Kimberly Jensen & Daniel De La Torre Ugarte & Seong‐Hoon Cho, 2016. "Impact of Public Infrastructure on Output of U.S. Food Manufacturing Industries: A Heterogeneous Dynamic Panel Approach," Agribusiness, John Wiley & Sons, Ltd., vol. 32(4), pages 439-453, November.
    15. Edilberto Tiago de Almeida & Raul da Mota Silveira Neto & Roberta de Moraes Rocha, 2022. "Manufacturing location patterns in Brazil," Papers in Regional Science, Wiley Blackwell, vol. 101(4), pages 839-873, August.
    16. Anna Matas Prat & Adriana Karina Ruíz Marín & Josep Lluís Raymond Bara, 2016. "How do road infrastructure investments affect the regional economy? Evidence from Spain," Working Papers wpdea1610, Department of Applied Economics at Universitat Autonoma of Barcelona.
    17. Jason P. Brown & Raymond J.G.M. Florax & Kevin T. McNamara, 2008. "Evolution Of Investment Flows In U.S. Manufacturing:A Spatial Panel Approach," Working Papers 08-06, Purdue University, College of Agriculture, Department of Agricultural Economics.
    18. Sarah A. Low & Martha Bass & Dawn Thilmany & Marcelo Castillo, 2021. "Local Foods Go Downstream: Exploring the Spatial Factors Driving U.S. Food Manufacturing," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 896-915, September.
    19. Schmit, Todd M. & Park, Kristen S. & Henehan, Brian M. & Hall, Jeffrey, 2012. "A Study of Food and Beverage Manufacturing in New York State," EB Series 186544, Cornell University, Department of Applied Economics and Management.
    20. Derek G. Brewin & Daniel C. Monchuk & Mark D. Partridge, 2009. "Examining the Adoption of Product and Process Innovations in the Canadian Food Processing Industry," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(1), pages 75-97, March.

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