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Value-Added Agricultural Enterprises and Local Economic Performance


  • Anil Rupasingha


Proponents of value-added agricultural enterprises (VAAE) argue for favorable government policies and funds to promote these industries as a local development strategy. Though regularly advocated at all levels of government, the beliefs regarding the benefits of VAAE to local economies merit empirical investigation. A county-level analysis of the contiguous U.S. states for a ten-year time period was used to evaluate the contribution of selected VAAE to county economic well-being. The two-stage least squares regression coupled with spatial econometric methods suggests that the support for these selected VAAE as a tool of local economic well-being, measured using income and employment growth and change in poverty rates, is not well founded. Copyright 2009 Agricultural and Applied Economics Association

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  • Anil Rupasingha, 2009. "Value-Added Agricultural Enterprises and Local Economic Performance," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(3), pages 511-534, September.
  • Handle: RePEc:oup:revage:v:31:y:2009:i:3:p:511-534

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    References listed on IDEAS

    1. Satheesh V. Aradhyula & Matthew T. Holt, 1988. "Risk Behavior and Rational Expectations in the U.S. Broiler Market," Food and Agricultural Policy Research Institute (FAPRI) Publications 88-wp33, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    2. Barry K. Goodwin & Ashok K. Mishra, 2005. "Another Look at Decoupling: Additional Evidence on the Production Effects of Direct Payments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1200-1210.
    3. William Lin, 1977. "Measuring Aggregate Supply Response under Instability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(5), pages 903-907.
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