IDEAS home Printed from
   My bibliography  Save this paper

Economic Impact Of Out-Sourcing From State Agencies In Bismarck To Rural North Dakota


  • Sell, Randall S.
  • Leistritz, F. Larry


This investigation of the potential savings to the State of North Dakota because of reduced office space and labor costs and alternatively, the potential benefits to rural communities of increasing employment by adding some state agency jobs was stimulated by Senate Concurrent Resolution No. 4006, which directed the Legislative Council to study state agency office space needs to determine the feasibility and desirability of transferring state agencies or state employees to rural areas. The objective of this analysis was two-fold; (1) determine the cost difference of operating offices in Bismarck versus rural communities and (2) determine the local/regional economic impacts of the potential jobs. The results indicated that development of satellite data processing offices may be a way for the State of North Dakota to save resources by decreasing operating expenses for wages and office rent. The increase in telecommunication costs would not outweigh the benefits. Furthermore, the metro areas of North Dakota do not have an excess capacity in local services (e.g., schools, city services) which means the metro areas are faced with additional investments in public infrastructure that many rural communities would not be faced with. The economic benefits to rural areas could be substantial; a satellite office with 5 employees in Bowman, North Dakota, would have the same relative impact as a new employer with 209 jobs in Bismarck.

Suggested Citation

  • Sell, Randall S. & Leistritz, F. Larry, 1999. "Economic Impact Of Out-Sourcing From State Agencies In Bismarck To Rural North Dakota," AE Series 23082, North Dakota State University, Department of Agribusiness and Applied Economics.
  • Handle: RePEc:ags:nddaes:23082
    DOI: 10.22004/ag.econ.23082

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Sell, Randall S. & Leistritz, F. Larry & Thompson, JoAnn M., 1996. "Socio-Economic Impacts Of School Consolidation On Host And Vacated Communities," Agricultural Economics Reports 23438, North Dakota State University, Department of Agribusiness and Applied Economics.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Community/Rural/Urban Development;


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:nddaes:23082. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.