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Business clusters in Mississippi's forest products industry

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  • Hagadone, Todd A.
  • Grala, Robert K.

Abstract

Spatial analysis of forest products manufacturer location allows for identifying potential forest business clusters and outlining areas suitable for cluster-based economic development. Mississippi can benefit from such development because of a strong presence of the forest industry. This study utilized an average nearest neighbor and a cluster and outlier analyses to examine spatial distribution of Mississippi's primary and secondary forest products manufacturers and identify potential forest business clusters. A Poisson regression was used to examine the impact of transportation infrastructure, labor, and availability of raw materials on location of these manufacturers. The results of the spatial analysis indicated that Mississippi's forest products manufacturers tended to cluster and identified four potential forest business clusters. They included one cluster of 26 primary forest products manufacturers in Southwest Mississippi, two clusters consisting of six and 58 secondary forest products manufacturers in Northeast Mississippi, and one cluster of 78 primary and secondary forest products manufacturers in Northeast Mississippi. The regression analysis indicated that county-level volume of harvested sawlogs had a positive impact on location of primary and secondary forest products manufacturers, whereas volume of harvested pulpwood had a positive impact on location of only secondary forest products manufacturers. Presence of four-lane interstate highways was associated with a decreased number of secondary manufacturers, whereas the presence of railway increased their number by almost 1.50 times. The number of existing primary manufacturers in a county had a positive impact on location of secondary manufacturers and increased their number by 1.12 times. Available labor force also had a positive but relatively small impact on location of secondary forest products manufacturers.

Suggested Citation

  • Hagadone, Todd A. & Grala, Robert K., 2012. "Business clusters in Mississippi's forest products industry," Forest Policy and Economics, Elsevier, vol. 20(C), pages 16-24.
    • Handle: RePEc:eee:forpol:v:20:y:2012:i:c:p:16-24
    DOI: 10.1016/j.forpol.2012.01.011
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    References listed on IDEAS

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    1. Barkley, David L. & Henry, Mark S., 2001. "Advantages And Disadvantages Of Targeting Industry Clusters," REDRL Research Reports 18792, Clemson University, Regional Economic Development Research Laboratory (REDRL).
    2. Aguilar, Francisco X., 2009. "Spatial econometric analysis of location drivers in a renewable resource-based industry: The U.S. South Lumber Industry," Forest Policy and Economics, Elsevier, vol. 11(3), pages 184-193, May.
    3. Michael Carroll & Neil Reid & Bruce Smith, 2008. "Location quotients versus spatial autocorrelation in identifying potential cluster regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(2), pages 449-463, June.
    4. Barkley, David L. & Henry, Mark S., 2001. "Advantages and Disadvantages of Targeting Industry Clusters," UCED Research Reports 113337, Clemson University, University Center for Economic Development.
    5. Barkley, David L. & Henry, Mark S., 2005. "Targeting Industry Clusters for Regional Economic Development: An Overview of the REDRL Approach," REDRL Research Reports 113803, Clemson University, Regional Economic Development Research Laboratory (REDRL).
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    Cited by:

    1. Pokharel, Raju & Latta, Gregory S., 2020. "A network analysis to identify forest merchantability limitations across the United States," Forest Policy and Economics, Elsevier, vol. 116(C).
    2. Liying Zhang & Chengliang Wu & Yang Zhang, 2020. "Experimental Study Based on Game Theory on the Private, Voluntary Supply Mechanisms of Goods for Forestry Infrastructure from the Perspective of Quasi-Public Goods," Sustainability, MDPI, vol. 12(7), pages 1-28, April.
    3. Pokharel, Raju & Grala, Robert K. & Grebner, Donald L., 2017. "Woody residue utilization for bioenergy by primary forest products manufacturers: An exploratory analysis," Forest Policy and Economics, Elsevier, vol. 85(P1), pages 161-171.
    4. M. Jean Blair & Bruno Gagnon & Andrew Klain & Biljana Kulišić, 2021. "Contribution of Biomass Supply Chains for Bioenergy to Sustainable Development Goals," Land, MDPI, vol. 10(2), pages 1-28, February.

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