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The effects of automobile production and local government expenditure on poverty in alabama


  • Sooriyakumar Krishnapillai

    () (Auburn University)

  • Henry Kinnucan

    () (Auburn University)


This paper studies the impact of automobile production on the poverty rate of Alabama's counties. The findings suggest that automobile production in Alabama significantly reduces the poverty rate in all counties. The impact of automobile production on poverty reduction in distressed black belt counties is greater than in other counties. The local government expenditure is not very effective in reducing the poverty. This implies that industrial development may be more effective in reducing poverty than government programs.

Suggested Citation

  • Sooriyakumar Krishnapillai & Henry Kinnucan, 2012. "The effects of automobile production and local government expenditure on poverty in alabama," Economics Bulletin, AccessEcon, vol. 32(3), pages 2136-2145.
  • Handle: RePEc:ebl:ecbull:eb-12-00406

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    References listed on IDEAS

    1. Hema Swaminathan & Jill L. Findeis, 2004. "Policy Intervention and Poverty in Rural America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1289-1296.
    2. Monica Fisher, 2007. "Why Is U.S. Poverty Higher in Nonmetropolitan than in Metropolitan Areas?," Growth and Change, Wiley Blackwell, vol. 38(1), pages 56-76.
    3. Davis, Elizabeth E. & Weber, Bruce A., 2002. "How Much Does Local Job Growth Improve Employment Outcomes of the Rural Working Poor?," The Review of Regional Studies, Southern Regional Science Association, vol. 32(2), pages 255-274, Summer/Fa.
    4. Fisher, Monica G., 2005. "On the Empirical Finding of a Higher Risk of Poverty in Rural Areas: Is Rural Residence Endogenous to Poverty?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(02), August.
    5. Anil Rupasingha & Stephan J. Goetz & David Freshwater, 2002. "Social and institutional factors as determinants of economic growth: Evidence from the United States counties," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(2), pages 139-155.
    6. Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2000. "Growth and poverty in rural China: the role of public investments," EPTD discussion papers 66, International Food Policy Research Institute (IFPRI).
    7. Robert K. Triest, 1997. "Regional differences in family poverty," New England Economic Review, Federal Reserve Bank of Boston, issue Jan, pages 3-17.
    8. William Levernier & Mark D. Partridge & Dan S. Rickman, 2000. "The Causes of Regional Variations in U.S. Poverty: A Cross-County Analysis," Journal of Regional Science, Wiley Blackwell, vol. 40(3), pages 473-497.
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    More about this item


    Automobile Production; Poverty; local government expenditure;

    JEL classification:

    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development


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