Manufacturing Transition in Local Economies: A Regional Adjustment ModelJason Brown, Dayton Lambert and Raymond Florax No 61130, 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado from Agricultural and Applied Economics Association Abstract: This paper addresses changes in capital formation by testing the importance of location factors with respect to the rate of establishment births and deaths in U.S. manufacturing, 2000–2004. A theoretical concept called “localized creative destruction” is tested as a mechanism to explain the dynamics impacting the spatial distribution of manufacturing establishment birth and death rates. While no support of this process was found, results identify a convergence process occurring where counties with high initial birth/death rates have smaller changes in firm birth and death rates. The interpretation is that counties become more equally competitive in terms of firm formation dynamics in lieu of successful counties increasing their lead in the short run. This is potentially relevant to policymakers and economic development practitioners who are concerned with business retention and the impact of new manufacturing establishments on their existing base. Keywords: Community/Rural/Urban; Development (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea10:61130 Access Statistics for this paper More papers in 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado from Agricultural and Applied Economics Association Contact information at EDIRC. |
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