IDEAS home Printed from https://ideas.repec.org/a/ags/jrapmc/132294.html
   My bibliography  Save this article

Targeting Business Investment in Rural Communities

Author

Listed:
  • Nagy, Cecil N.
  • Olfert, M. Rose
  • Skotheim, J.

Abstract

Many agricultural-based communities in the Great Plains region of North America face declining rural populations and shrinking market size to levels eventually insufficient to maintain their functions. In response, rural communities often pursue a variety of business recruitment and retention initiatives including incentives to entice new business to their location. This paper estimates a model of business-community compatibility designed to assist communities in identifying potential business opportunities, given the community’s characteristics. An Industrial Targeting system for Rural Communities (ITRC) model is developed to suggest business investment alternatives, and the prerequisite conditions for attracting them. Findings suggest that industrial targeting is a complex, iterative, and often creative exercise and that a detailed investigation of business requirements and community attributes is informative. However, the ITRC model must be used along with other information about local and regional economic and institutional conditions.

Suggested Citation

  • Nagy, Cecil N. & Olfert, M. Rose & Skotheim, J., 2004. "Targeting Business Investment in Rural Communities," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 34(4), pages 1-21.
    • Handle: RePEc:ags:jrapmc:132294
    DOI: 10.22004/ag.econ.132294
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/132294/files/04-2-4.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.132294?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Philip McCann, 1995. "Rethinking the Economics of Location and Agglomeration," Urban Studies, Urban Studies Journal Limited, vol. 32(3), pages 563-577, April.
    2. John C. Leatherman & Donald J. Howard & Terry L. Kastens, 2002. "Improved Prospects for Rural Development: An Industrial Targeting System for the Great Plains," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(1), pages 59-77.
    3. Bollman, Ray D., 1999. "Human Capital and Rural Development: What Are the Linkages?," Agriculture and Rural Working Paper Series 28025, Statistics Canada.
    4. Kusmin, Lorin D. & Redman, John M. & Sears, David W., 1996. "Factors Associated with Rural Economic Growth: Lessons from the 1980's," Technical Bulletins 156785, United States Department of Agriculture, Economic Research Service.
    5. THISSE, Jacques-François, 1987. "Location theory, regional science, and economics," LIDAM Reprints CORE 777, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Leon N. Moses, 1958. "Location and the Theory of Production," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 72(2), pages 259-272.
    7. Jack C. Stabler & M. R. Olfert, 1993. "Farm Structure And Community Viability In The Northern Great Plains," The Review of Regional Studies, Southern Regional Science Association, vol. 23(3), pages 265-286, Winter.
    8. Fujita, M. & Ogawa, H. & Thisse, J.-F., 1987. "A spatial competition approach to central place theory: some basic principles," LIDAM Discussion Papers CORE 1987051, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    9. Beguin, H, 1992. "Christaller's Central Place Postulates: A Commentary," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 26(3), pages 209-229, September.
    10. James W. Henderson & Thomas M. Kelly & Beck A. Taylor, 2000. "The Impact of Agglomeration Economies on Estimated Demand Thresholds: An Extension of Wensley and Stabler," Journal of Regional Science, Wiley Blackwell, vol. 40(4), pages 719-733, November.
    11. Kusmin, Lorin D., 1994. "Factors Associated with the Growth of Local and Regional Economies: A Review of Selected Empirical Literature," Staff Reports 278733, United States Department of Agriculture, Economic Research Service.
    12. Mathur, Vijay K., 1979. "Some unresolved issues in the location theory of the firm," Journal of Urban Economics, Elsevier, vol. 6(3), pages 299-318, July.
    13. Eaton, B Curtis & Lipsey, Richard G, 1982. "An Economic Theory of Central Places," Economic Journal, Royal Economic Society, vol. 92(365), pages 56-72, March.
    14. John C. Leatherman & Donald J. Howard & Terry L. Kastens, 2002. "Improved Prospects for Rural Development: An Industrial Targeting System for the Great Plains," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(1), pages 59-77.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Leatherman, John C., 2002. "Industry Location Modeling: Extensions Of The Plains Economic Targeting System," Western Economics Forum, Western Agricultural Economics Association, vol. 1(1), pages 1-5.
    2. Craig W. Carpenter & Anders Van Sandt & Rebekka Dudensing & Scott Loveridge, 2022. "Profit Pools and Determinants of Potential County-Level Manufacturing Growth," International Regional Science Review, , vol. 45(2), pages 188-224, March.
    3. Wieland, Thomas, 2014. "Räumliches Einkaufsverhalten und Standortpolitik im Einzelhandel unter Berücksichtigung von Agglomerationseffekten: Theoretische Erklärungsansätze, modellanalytische Zugänge und eine empirisch-ökonome," MPRA Paper 77163, University Library of Munich, Germany.
    4. Ian R. Gordon & Philip McCann, 2000. "Industrial Clusters: Complexes, Agglomeration and/or Social Networks?," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 513-532, March.
    5. Philip Mccann & John H. LL. Dewhurst, 1998. "Regional Size, Industrial Location and Input-Output Expenditure Coefficients," Regional Studies, Taylor & Francis Journals, vol. 32(5), pages 435-444.
    6. John C. Leatherman & Donald J. Howard & Terry L. Kastens, 2002. "Improved Prospects for Rural Development: An Industrial Targeting System for the Great Plains," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(1), pages 59-77.
    7. Gordon F. Mulligan, 1984. "Agglomeration and Central Place Theory: A Review of the Literature," International Regional Science Review, , vol. 9(1), pages 1-42, September.
    8. Conroy, Tessa & Deller, Steven & Tsvetkova, Alexandra, 2016. "Regional business climate and interstate manufacturing relocation decisions," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 155-168.
    9. David Mushinski & Stephan Weiler & Benjamin Widner, 2014. "The impact of retail establishments in hinterlands on the export role of retail establishments in rural places," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(2), pages 469-487, March.
    10. Yeung-Nan Shieh, 1988. "Variable Transportation Rates and The Profit-Maximization Location Theory of The Firm," Urban Studies, Urban Studies Journal Limited, vol. 25(4), pages 341-347, August.
    11. Iammarino, Simona & McCann, Philip, 2006. "The structure and evolution of industrial clusters: Transactions, technology and knowledge spillovers," Research Policy, Elsevier, vol. 35(7), pages 1018-1036, September.
    12. Tessa Conroy & Steven Deller & Alexandra Tsvetkova, 2017. "Interstate Relocation Of Manufacturers And Business Climate," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 29(1), pages 18-45, March.
    13. Kalyan Chakraborty, 2012. "Estimation of Minimum Market Threshold for Retail Commercial Sectors," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 18(3), pages 271-286, August.
    14. Davis Reum, Alison & Harris, Thomas R., 2006. "Exploring Firm Location Beyond Simple Growth Models: A Double Hurdle Application," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(1), pages 1-23.
    15. Karima Kourtit & Peter Nijkamp & Mark D. Partridge & Gordon F. Mulligan, 2013. "The future of non-metropolitan areas," Regional Science Policy & Practice, Wiley Blackwell, vol. 5(2), pages 219-224, June.
    16. Arthur Huang & David Levinson, 2011. "Why Retailers Cluster: An Agent Model of Location Choice on Supply Chains," Environment and Planning B, , vol. 38(1), pages 82-94, February.
    17. Céline Rozenblat, 2010. "Opening the Black Box of Agglomeration Economies for Measuring Cities’ Competitiveness through International Firm Networks," Urban Studies, Urban Studies Journal Limited, vol. 47(13), pages 2841-2865, November.
    18. Ugo Fratesi, 2004. "Regional Economies, Innovation and Competitiveness in a System Dynamics Representation," Urban/Regional 0407005, University Library of Munich, Germany.
    19. Sara C. Santos Cruz & Aurora A.C. Teixeira, 2007. "A new look into the evolution of clusters literature. A bibliometric exercise," FEP Working Papers 257, Universidade do Porto, Faculdade de Economia do Porto.
    20. McCann, Philip & Arita, Tomokazu & Gordon, Ian R., 2002. "Industrial clusters, transactions costs and the institutional determinants of MNE location behaviour," International Business Review, Elsevier, vol. 11(6), pages 647-663, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jrapmc:132294. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/mcrsaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.