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Influence of Location on Productivity: Manufacturing Technology in Rural and Urban Areas, The

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  • Sheila A. Martin
  • Richard McHugh
  • Stanley R. Johnson

Abstract

Policies to counter the growing discrepancy between economic opportunities in rural and urban areas have focused predominantly on expanding manufacturing in rural areas. Fundamental to the design of these strategies are the relative costs of production and productivity of manufacturing in rural and urban areas. This study aims to develop information that can be used to assess the productivity of manufacturing in rural and urban areas. Production functions are estimated in the meat products and household furniture industries to investigate selected aspects of the effect of rural, small urban, and metropolitan location on productivity. The results show that the effect of location on productivity varies with industry, size, and the timing of the entry of the establishment into the industry. While the analysis is specific to two industries, it suggests that development policies targeting manufacturing can be made more effective by focusing on industries and plants with characteristics that predispose them to the locations being supported.

Suggested Citation

  • Sheila A. Martin & Richard McHugh & Stanley R. Johnson, 1991. "Influence of Location on Productivity: Manufacturing Technology in Rural and Urban Areas, The," Center for Agricultural and Rural Development (CARD) Publications 91-wp83, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  • Handle: RePEc:ias:cpaper:91-wp83
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    Cited by:

    1. George A. Erickcek & Hannah McKinney, 2004. "Small Cities Blues: Looking for Growth Factors in Small and Medium-Sized Cities," Upjohn Working Papers and Journal Articles 04-100, W.E. Upjohn Institute for Employment Research.
    2. Suho Bae, 2009. "The responses of manufacturing businesses to geographical differences in electricity prices," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(2), pages 453-472, June.
    3. Suho Bae & Moon-gi Jeong & Seong-gin Moon, 2015. "Effects of institutional arrangements in local water supply services in Korea," Papers in Regional Science, Wiley Blackwell, vol. 94(4), pages 849-868, November.

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