The influence of location on productivity: manufacturing technology in rural and urban areas

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 r...

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Bibliographic Details
Published in:Growth and change 1993-10, Vol.24 (4), p.459-486
Main Authors: Martin, S.A, McHugh, R, Johnson, S.R
Format: Article
Language:English
Subjects:
Agglomeration
COSTOS DE PRODUCCION
Costs
COUT DE PRODUCTION
DECISION MAKING
DESARROLLO RURAL
DEVELOPPEMENT RURAL
Econometrics
Economic activity
Economic theory
Employment
FONCTION DE PRODUCTION
Food processing industry
FUNCIONES DE LA PRODUCCION
Furniture
INDUSTRIA
INDUSTRIE
INDUSTRY
LOCALISATION DES PRODUCTIONS
LOCALIZACION DE LA PRODUCCION
Location of industry
LOCATION OF PRODUCTION
MANUFACTURE
Manufacturing
Price elasticity
PRISE DE DECISION
PROCESAMIENTO
PROCESSING
PRODUCTION COSTS
PRODUCTION FUNCTIONS
PRODUCTION LOCATION
Productivity
RURAL AREAS
RURAL DEVELOPMENT
Success
TECHNOLOGIE
TECHNOLOGY
TECNOLOGIA
TOMA DE DECISIONES
TRAITEMENT
URBAN AREAS
ZONAS RURALES
ZONAS URBANAS
ZONE RURALE
ZONE URBAINE
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Summary: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 compared to urban areas. This study develops information that can be used to assess the productivity of manufacturing in rural and urban areas. Production functions are estimated for the meat‐products and household‐furniture industries to investigate selected aspects of location and productivity. The results show that the effect of location on productivity varies with industry, size, and the timing of entry. Although the analysis is specific to two industries, it suggests that development policies targeting manufacturing can be more effective if they focus on industries and plants with characteristics that predispose them to the locations they support.
ISSN:0017-4815
1468-2257
DOI:10.1111/j.1468-2257.1993.tb00134.x