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Retail Development in Rural Counties: Evidence from the Upper Midwest

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  • Blair, John P.
  • Traynor, Thomas
  • Duan, Manjiang

Abstract

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.

Suggested Citation

  • Blair, John P. & Traynor, Thomas & Duan, Manjiang, 2004. "Retail Development in Rural Counties: Evidence from the Upper Midwest," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 34(1), pages 1-16.
  • Handle: RePEc:ags:jrapmc:132280
    DOI: 10.22004/ag.econ.132280
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    References listed on IDEAS

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    1. William A. Testa, 1993. "Trends and prospects for rural manufacturing," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 17(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, February.
    3. Kenneth M. Johnson & Thomas H. Klier, 2000. "Effect of auto plant opening on net migration in the auto corridor, 1980-97," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 25(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), pages 1-15.
    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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    Cited by:

    1. Richard V. Adkisson & Francisco J. Pallares, 2016. "Retail employment in rural America: The case of New Mexico," Regional Science Policy & Practice, Wiley Blackwell, vol. 8(1-2), pages 75-91, March.
    2. Randall Akee & Elton Mykerezi & Richard M. Todd, 2017. "Reservation Employer Establishments: Data from the U.S. Census Longitudinal Business Database," Working Papers 17-57, Center for Economic Studies, U.S. Census Bureau.
    3. Artz, Georgeanne M. & Eathington, Liesl & Francois, Jasmine & Masinde, Melvin & Orazem, Peter F., 2017. "Sorting into and out of Rural and Urban Retail Markets," ISU General Staff Papers 201709140700001034, Iowa State University, Department of Economics.

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    Keywords

    Community/Rural/Urban Development;

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