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Food Industry Investment Flows: Implications for Rural Development

Author

Listed:
  • Lambert, Dayton M.

    (U TN)

  • McNamara, Kevin T.

    (Purdue U)

  • Garrett, Megan I.

    (Boomtown Institute, Effingham)

Abstract

Food processing firms are often seen as potential sources of growth for rural areas. This paper examines the influence that agglomeration, labor, product and input markets, infrastructure, and government fiscal attributes have on food manufacturing investment flows. The analysis uses a spatial probit model along with spatial clustering methods to analyze county-level data for 12 states in the midwest and southern U.S. Findings suggest that rural areas are at a comparative disadvantage with respect to attracting demand-oriented food processors, but non-metro counties with economic ties to urban centers may be attractive investment sites to supply-oriented food manufacturers.

Suggested Citation

  • Lambert, Dayton M. & McNamara, Kevin T. & Garrett, Megan I., 2006. "Food Industry Investment Flows: Implications for Rural Development," The Review of Regional Studies, Southern Regional Science Association, vol. 36(2), pages 140-162.
  • Handle: RePEc:rre:publsh:v:36:y:2006:i:2:p:140-62
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Cho, Seong-Hoon & Lambert, Dayton M. & Roberts, Roland K. & Kim, Seung Gyu, 2008. "Moderating Urban Sprawl through Land Value Taxation," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6150, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. 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(01), pages 117-135, April.
    3. Brown, Jason & Lambert, Dayton, 2014. "Location decisions of natural gas extraction establishments: a smooth transition count model approach," Research Working Paper RWP 14-5, Federal Reserve Bank of Kansas City.
    4. Lambert, Dayton M. & Brown, Jason P. & Florax, Raymond J.G.M., 2010. "A two-step estimator for a spatial lag model of counts: Theory, small sample performance and an application," Regional Science and Urban Economics, Elsevier, vol. 40(4), pages 241-252, July.
    5. Maureen Kilkenny, 2010. "Urban/Regional Economics And Rural Development," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 449-470.
    6. Lambert, D. M. & Clark, C. D. & Wilcox, M. D. & Park, W. M., 2007. "Do Migrating Seniors Affect Business Establishment and Job Growth? An Empirical Look at Southeastern Nonmetropolitan Counties, 2000-2004," The Review of Regional Studies, Southern Regional Science Association, vol. 37(2), pages 251-278.

    More about this item

    Keywords

    Food Industry; Food Processing; Food; Infrastructure; Manufacturing; Rural; Spatial;

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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