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Measuring the Impact of Meat Packing and Processing Facilities in Nonmetropolitan Counties: A Difference-in-Differences Approach

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  • Georgeanne M. Artz
  • Peter F. Orazem
  • Daniel M. Otto

Abstract

Considerable controversy exists regarding the costs and benefits of growth in the meat packing and processing industry for rural counties. This study investigates the effects of this industry on social and economic outcomes in nonmetropolitan counties of 23 Midwestern and Southern states from 1990 to 2000. Results suggest that as the meat packing industry's share of a county's total employment and wage bill rises, total employment growth increases. However, employment growth in other sectors slows, as does local wage growth. Industry growth has little impact on local crime rates or on growth of government spending on education, health, or police protection. Copyright 2007, Oxford University Press.

Suggested Citation

  • Georgeanne M. Artz & Peter F. Orazem & Daniel M. Otto, 2007. "Measuring the Impact of Meat Packing and Processing Facilities in Nonmetropolitan Counties: A Difference-in-Differences Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 557-570.
  • Handle: RePEc:oup:ajagec:v:89:y:2007:i:3:p:557-570
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2007.01003.x
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    Cited by:

    1. Daniel C. Monchuk & Dermot J. Hayes & John A. Miranowski & Dayton M. Lambert, 2011. "Inference Based On Alternative Bootstrapping Methods In Spatial Models With An Application To County Income Growth In The United States," Journal of Regional Science, Wiley Blackwell, vol. 51(5), pages 880-896, December.
    2. Artz, Georgeanne M. & Jackson, Rebecca & Orazem, Peter F., 2010. "Is It a Jungle Out There? Meat Packing, Immigrants, and Rural Communities," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(2), August.
    3. Maureen Kilkenny, 2010. "Urban/Regional Economics And Rural Development," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 449-470.
    4. Sneeringer, Stacy E. & Hertz, Thomas, 2010. "Local Effects of Hog Production on Farm and Non-Farm Economic Outcomes," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61463, Agricultural and Applied Economics Association.
    5. Mulugeta S. Kahsai & Randall Jackson, 2015. "Quasi-Experimental Methods an Annotated Bibliography," Working Papers Resource Document 2015-01, Regional Research Institute, West Virginia University.
    6. Pugliese, Andrew & McCann, Laura & Artz, Georgeanne, 2015. "Impacts of national forests in the West on county population and employment," Forest Policy and Economics, Elsevier, vol. 50(C), pages 62-69.
    7. Elena G. Irwin & Andrew M. Isserman & Maureen Kilkenny & Mark D. Partridge, 2010. "A Century of Research on Rural Development and Regional Issues," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(2), pages 522-553.
    8. Juan Tomas Sayago-Gomez & Gianfranco Piras & Donald Lacombe & Randall Jackson, 2015. "Impact Evaluation of Investments in the Appalachian Region: A Reappraisal," Working Papers Working Paper 2015-06, Regional Research Institute, West Virginia University.
    9. Adams, Brian, 2016. "The employment impact of motor vehicle assembly plant openings," Regional Science and Urban Economics, Elsevier, vol. 58(C), pages 57-70.
    10. Partridge, Mark D. & Olfert, M. Rose & Ali, Kamar, 2009. "Towards a Rural Development Policy: Lessons from the United States and Canada," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 39(2).
    11. Monchuk, Daniel C. & Hayes, Dermot J. & Miranowski, John A & Lambert, Dayton M., 2011. "Inference Based on Alternative Bootstrapping Methods in Spatial Models with an Application to County Income Growth in the United States," ISU General Staff Papers 201103240700001526, Iowa State University, Department of Economics.

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