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Manufacturing Location: the Impact of Human Capital Stocks and Flows

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  • Kevin T. McNamara

    (University of Georgia)

  • Warren P. Kriesel

    (Ohio State University)

Abstract

National attention has been focused on the importance of education to rural economic development by several recent studies. Manufacturing location and employment growth studies, however, have presented conflicting evidence about the relationship between human capital and local economic development. While insight into this relationship holds important education policy implications for all levels of government, it is particularly critical for rural governments as rural communities attempt to stabilize and strengthen their economic bases. This paper reports the results of a manufacturing firm location study that incorporated measures for both human capital stocks and flows into a statistical model of community attributes that were hypothesized to influence firm location decisions. The results indicate the complexity of evaluating the impact of human capital investment on local or regional economic growth. Given the significance of the human factors to the location decisions of firms, it is surprising that so little attention has been given to these issues.

Suggested Citation

  • Kevin T. McNamara & Warren P. Kriesel, 1988. "Manufacturing Location: the Impact of Human Capital Stocks and Flows," The Review of Regional Studies, Southern Regional Science Association, vol. 18(1), pages 42-48, Winter.
    • Handle: RePEc:rre:publsh:v18:y:1988:i:1:p:42-48
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    References listed on IDEAS

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    1. Oster, Sharon, 1979. "Industrial Search for New Locations: An Empirical Analysis," The Review of Economics and Statistics, MIT Press, vol. 61(2), pages 288-292, May.
    2. Welch, Finis, 1975. "Human Capital Theory: Education, Discrimination, and Life Cycles," American Economic Review, American Economic Association, vol. 65(2), pages 63-73, May.
    3. Smith, Eldon D. & Deaton, Brady J. & Kelch, David R., 1978. "Location Determinants Of Manufacturing Industry In Rural Areas," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 10(1), pages 1-10, July.
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    5. Leuck, Dale J., 1979. "An Econometric Model of Manufacturing Employment Growth in Rural Tennessee Counties from 1962 to 1976," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 11(2), pages 63-67, December.
    6. Leuck, Dale J., 1979. "An Econometric Model Of Manufacturing Employment Growth In Rural Tennessee Counties From 1962 To 1976," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 11(2), pages 1-5, December.
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    Cited by:

    1. Lambert, Dayton M. & McNamara, Kevin T. & Garrett, Megan I., 2006. "An Application of Spatial Poisson Models to Manufacturing Investment Location Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(1), pages 1-17, April.
    2. Stallmann, Judith I. & Johnson, Thomas G. & Mwachofi, Ari & Flora, Jan L., 1993. "Labor Market Incentives To Stay In School," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(2), pages 1-13, December.
    3. David L. Barkley & Kevin T. McNamara, 1994. "Manufacturers' Location Decisions: Do Surveys Provide Helpful Insights?," International Regional Science Review, , vol. 17(1), pages 23-47, April.
    4. Lambert, D.M. & Wilcox, M. & English, A. & Stewart, L., 2008. "Ethanol Plant Location Determinants and County Comparative Advantage," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 117-135, April.
    5. repec:rre:publsh:v:36:y:2006:i:2:p:140-62 is not listed on IDEAS
    6. Henderson, Jason R. & McNamara, Kevin T., 2000. "The Location Of Food Manufacturing Plant Investments In Corn Belt Counties," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-18, December.
    7. Barkley, David L. & Henry, Mark S. & Bao, Shuming, 1998. "The Role of Local School Quality in Rural Employment and Population Growth," The Review of Regional Studies, Southern Regional Science Association, vol. 28(1), pages 81-102, Summer.
    8. Kriesel, Warren & McNamara, Kevin T., 1991. "A County-Level Model Of Manufacturing Plant Recruitment With Improved Industrial Site Quality Measurement," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(1), pages 1-7, July.
    9. James Hite, 1993. "The Influence Of Regional Science Upon Agricultural Economics," The Review of Regional Studies, Southern Regional Science Association, vol. 23(1), pages 73-82, Summer.
    10. Dayton M. Lambert & Kevin T. McNamara, 2009. "Location determinants of food manufacturers in the United States, 2000–2004: are nonmetropolitan counties competitive?," Agricultural Economics, International Association of Agricultural Economists, vol. 40(6), pages 617-630, November.
    11. Cole, Ismail M., 2000. "Spatial Differences in Manufacturing Firm Births and Deaths and Local Economic Conditions: Evidence from Pennsylvania," The Review of Regional Studies, Southern Regional Science Association, vol. 30(2), pages 215-236, Fall.
    12. Barkley, David L. & Keith, John E., 1991. "The Locational Determinants Of Western Nonmetro High Tech Manufacturers: An Econometric Analysis," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(2), pages 1-14, December.
    13. McGranahan, David A., 1998. "Local Problems Facing Manufacturers: Results of the ERS Rural Manufacturing Survey," Agricultural Information Bulletins 33765, United States Department of Agriculture, Economic Research Service.
    14. 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.
    15. Rainey, Daniel V. & McNamara, Kevin T., 2002. "Tax Incentives: An Effective Development Strategy For Rural Communities?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(2), pages 1-7, August.
    16. Mônica A. Haddad & Gary Taylor & Francis Owusu, 2010. "Locational Choices of the Ethanol Industry in the Midwest Corn Belt," Economic Development Quarterly, , vol. 24(1), pages 74-86, February.
    17. Marre, Alexander W. & Rupasingha, Anil, 2016. "School Quality and the Urban-Rural Migration of Firms," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235965, Agricultural and Applied Economics Association.
    18. 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.

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