Source: PURDUE UNIVERSITY submitted to NRP
RURAL CHANGE: MARKETS, GOVERNANCE AND QUALITY OF LIFE
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0210271
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
NE-1029
Project Start Date
Oct 1, 2007
Project End Date
Sep 30, 2012
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
PURDUE UNIVERSITY
(N/A)
WEST LAFAYETTE,IN 47907
Performing Department
Agricultural Economics
Non Technical Summary
Rural communities are faced with declining manufacturing employment as a result of restructuring of the manufacturing sector. Policy makers need to understand the potential for sustaining the sector. The project examines factors influencing the spatial distribution of manufacturing investment and the resulting income and employment effects.
Animal Health Component
100%
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
60861993010100%
Goals / Objectives
Rural Industry: Investigate the potential for rural development policies based on entrepreneurship, industrial clustering, value-added and nontraditional agricultural businesses and analyze the spatial implications of industrial restructuring on employment and earnings.
Project Methods
Use various analytical methods with both primary and secondary data to evaluate local, regional and national factors influencing manufacturing investments decisions and manufacturing employment change.

Progress 10/01/07 to 09/30/12

Outputs
OUTPUTS: During this reporting period Dr. McNamara assumed a major leadership role in USAID funded institutional development project in Afghanistan and was unable to attend this multistate meeting or contribute to this multistate project. PARTICIPANTS: Not relevant to this project. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
See above.

Publications

  • No publications reported this period


Progress 10/01/09 to 09/30/10

Outputs
OUTPUTS: The rsearch helps understand the dynamics of rural and urban growth in Indiana and other states. Manufacturing is recovering but differently from prior resission periods. GDP is growing while employment continues to be weak. There has been a rural to urban shift in manufacturing investment and growth. Urban infrastructure has become increasingly important in a state where rural manufactuing once dominated the manufacturing sector. Development policy should recognize that infrastructure and urban agglomeration are key determinants of manufacturing growth. Also, high wage, unskill manufacturing jobs are not coming back into the economy. The poultry sector continues to stimulate economic growth throughout the country besause of strong consumer demand. The poultry industry production translates into stong rural economic benefits from the backward linkages to local agricultural economies. PARTICIPANTS: Kevin T McNamara, Elizabet Dobis, Carlos Meyan, graduate student Dayton Lambert, University of Tennessee, former graduate student Jason brown, Economic Research Service, USDA, former gradute student TARGET AUDIENCES: Researchers and local development officals were the primary target audiences. Results were shared in academic and applied research outlets and shared with leaders in responce to requests for information. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Outputs from the project were used to help decision makers in Indiana understand that while the manufacturing is recovering, it is different from prior recessionaly periods. GDP is growing while employment continues to be weak. There also has been a rural to urban shift in manufacturing investment and growth. Indiana livestock sector continues to stimulate economic growth in the state.

Publications

  • Elizabeth A Dobis and Kevin T McNamara. Two Indianas A Story of Disparate Growth and Opportunity. Purdue Agricultural Economics Report. December 2010.
  • Elizabeth A Dobis, Dayton Lambert, and Kevin T McNamara. Location Determinants of Food Manufacturing in the United States: The Competitiveness of Nonmetropolitan Counties. Purdue Agricultural Economics Report. May 2010.
  • Elizabeth A Dobis and Kevin T McNamara. Indiana Manufacturing: The Changing Face of a Manufacturing State. Purdue Agricultural Economics Report. May 2010.
  • Carlos Mayen and Kevin T McNamara. Economic Importance of the Indiana Poultry Industry. Department of Agricutlural Economics, Purdue University. June 2010.


Progress 10/01/08 to 09/30/09

Outputs
OUTPUTS: Research on factors manufacturing investment and food processing plan investment indicates that manufacturing firms in general and food processors in particilar tend to make plant investments in urban areas that possess the cost reducing attributes frims need to be competitive. While urban areas are favored there are spillover location benefits in counties adjactent to urban areas. Research indicated that economic income and employment benefits assocated with poultry production were greater than indicated in available secondary data. Survey data are needed due industry structrue issues that result in under countlng. PARTICIPANTS: Dayton Lambert from the Univeristy of Tennessee, Jason Brown from Purdue Univeristy, Carlos Mayen from Purdue University, Elizabeth Dobis from Purdue University and Kevin McNamara from Purdue University worked on this resarch. TARGET AUDIENCES: The research target economic development and elected decision makers. Economics development professionals read the jounrals the articles are published in. Applied articles are being prepared for popular outlets. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Research indicated that economic income and employment benefits assocated with poultry production were greater than indicated in available secondary data. Survey data are needed due industry structrue issues that result in under countlng.

Publications

  • Lambert, D.M., K. McNamara, and M. Garret. (2006) An Application of Spatial Poisson Models to Manufacturing Investment Location Analysis. Journal of Agriculture and Applied Economics, 38(1): 102-115.
  • Lambert, D. M., K. T. McNamara. (2009) Location Determinants of Food Manufacturers in the U.S., 2000 - 2004: Are Nonmetropolitan Counties Competitive Agricultural Economics 40(6). (in press)
  • Brown, Jason P., Raymond Florax, and Kevin T. McNamara. (2009) Determinants of Investment Flows in U.S. Manufacturing, Review of Regional Studies. (in press)


Progress 10/01/07 to 09/30/08

Outputs
OUTPUTS: Location research supports the hypothesis that restructuring during the 80s and 90s has changed firm manufacturing investment behavior. Urban agglomeration and infrasturcture (Evolution of investment flows in U.S. Manufacturing) have become primary location determinants as reflected in an inceased concentration of manufacutring investment in and around urban areas. The research suggest rural or nonmetro areas have become less competitive sites for investment location. Further research suggests this urban advantage exists for food industry manufacturing as well (Location Determinants of Food Manufacturing Investment: Are nonmetropolitan Counties Competitive ,Food Industry Manufacturing Investment Flows in the United States). This reseach suggests rural areas will need to look to nonmanufacturing investment to sustain income and employment. It also suggests that the economic manufacturing base of rural communities will continue to decline. This information is being shared through presentations at professional meetings, referred publications, extension meeting, panel/industry discussions. PARTICIPANTS: Kevin McNamara, Dayton Lambert and Jason Brown were activiely engaged in this research. The work benefited from extensive discussion/review by colleagues in USDA, USDC, USBA and several universities. TARGET AUDIENCES: The target audience includes regional development researchers and other conducting research on economic development as well as economic development policy makers. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
Findings have been discussed with professional colleagues as well as state development professionals. The general impact has been an improved understanding of what is influencing firm investment location decisions and the increasing difficulty that rural communities face attracting and maintaining their manufacturing base.

Publications

  • McNamara,Kevin T.,Dayton M.Lambert,and Megan I. Garrett Beeler (2008) Food Industry Manufacturing Investment Flows in the United States, Staff Paper, Department of Agricultural Economics, Purdue Univeristy
  • Lambert,Dayton M., Location Determinants of Food Manufacturing Investment: Are nonmetropolitan Counties Competitive (2008)Staff Paper, Department of Agricultural Economics, Purdue Univeristy
  • Brown,Jason P., Raymond J.G.M. Florax, Kevin T. McNamara (2008) Evolution of investment flows in U.S. Manufacturing: A Spatial Panel Approach. Staff Paper, Department of Agricultural Economics, Purdue Univeristy