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Retail Development in Rural Counties: Evidence from the Upper Midwest

Listed author(s):
  • Blair, John P.
  • Traynor, Thomas
  • Duan, Manjiang
Registered author(s):

    Concerns have been raised that potential retail activity is being lost in rural areas. This study examines the response of retail employment and the number of retail establishments to changes in local employment in isolated rural areas. Since many attempts to strengthen rural retail activity focused on increasing market size by attracting manufacturing activities, special a ttention is devoted to the empirical analysis of the manufacturing/retail relationship. Using data from the upper Midwest, a statistically significant association between changes in manufacturing employment and resulting changes in retail employment was found. The stimulative impact of manufacturing employment on retail activity was found to be more consistent than other types of job growth. Manufacturing activity also stimulated new retail establishments. Competition from nearby metropolitan areas contributed to the difficulty rural areas have in retail development and the difficulty may be increasing since the start of the analysis.

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    Article provided by Mid-Continent Regional Science Association in its journal Journal of Regional Analysis and Policy.

    Volume (Year): 34 (2004)
    Issue (Month): 1 ()

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    Handle: RePEc:ags:jrapmc:132280
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    1. William A. Testa, 1993. "Trends and prospects for rural manufacturing," Economic Perspectives, Federal Reserve Bank of Chicago, issue Mar, pages 27-36.
    2. David Mushinski & Stephen Weiler, 2002. "A Note on the Geographic Interdependencies of Retail Market Areas," Journal of Regional Science, Wiley Blackwell, vol. 42(1), pages 75-86.
    3. Thomas H. Klier & Kenneth M. Johnson, 2000. "Effect of auto plant opening on net migration in the auto corridor, 1980-97," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q IV, pages 14-29.
    4. Bain, John S., 1984. "Transfer Payment Impacts on Rural Retail Markets: A Regression Analysis," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 14(1).
    5. John J. Gruidl & Dimitri Andrianacos, 1994. "Determinants Of Rural Retail Trade: A Case Study Of Illinois," The Review of Regional Studies, Southern Regional Science Association, vol. 24(1), pages 103-118, Summer.
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