Glen C. Pulver

Exports, Impacts, and Locations of Services Producers

Policymakers concerned with regional economic development would do well to consider the growing importance of the services-producing sector of the economy. Although, services producers historically have not been targets for basic development, this paper provides evidence that some services producers could contribute as much to the local economy as the manufacturing sector. A survey of selected manufacturers and services producers in the Upper Midwest yielded four major conclusions. Firms in selected services-producing industries make a large proportion of their sales to extraregional customers; although the services-producing firms studied have lower annual sales than the selected manufacturers, their relative impact on regional economic growth is potentially larger than that of many manufacturing firms because of strong backward linkages to the local economy; services-producing firms which are active exporters tend to be larger and to be regional offices or headquarters; and many selected services producers are able to export from rural locations.

Nonmanufacturing business as a growth alternative in nonmetropolitan areas

Abstract The continuing need for more employment opportunities in nonmetropolitan areas, combined with the diminishing ability of manufacturing to produce the opportunities, and changing desires and attitudes with respect to growth, indicate a need for job creation strategies not geared solely to manufacturing. A suggested alternative is selected nonmanufacturing business. However, to date, little information on this economic sector exists for nonmetropolitan areas. This paper represents an initial step in providing this information. The nonmanufacturing businesses play both import substitution and export roles. Almost 27 percent of the businesses were primarily exporters. Larger, nonlocally owned businesses were more apt to be exporters. With respect to location factors, the businesses surveyed identified community, market and labor factors as the most important in determining a favorable location.

Developing a Community Perspective on Rural Economic Development Policy

There is a growing economic disparity between rural and urban areas. To be effective, policy aimed at improving rural employment and income must recognize the great variations that exist in local development opportunities. The objectives of a comprehensive rural economic development policy should include the concerns of both the farm and nonfarm rural economies and resource transitions–people and capital–from one economic use to another. Community development practitioners can play a critical role in helping rural volunteer leaders assess their conditions, acquire necessary knowledge from external sources, and act as catalysts and facilitators in the execution of economic development policy. This paper outlines the changing rural economic base, the factors affecting development prospects, general policy objectives, and the role of the community development practitioner.

Changes in Income Sources in Rural America

that the primary sources of economic wellbeing of rural America have changed dramatically over the past half century. Although agriculture remains a critical industry-29% of the jobs in nonmetropolitan counties are agriculturally related (Petrulis)-the personal income generated by farming is of declining importance even in the most farm-dependent states and counties of the United States. Attributing the current rural economic difficulty to the farm crisis alone may clearly miss some of the most serious causes of the problem. Policies such as those dealing with deregulation, privatization, international trade, social welfare, budget reduction, and rural development may be as critical to rural incomes, including those of farm families, as is farm policy. It is the intent of this paper to outline the historic changes in the dependency of rural America on farm and nonfarm sources of income. The first part reviews the changes in income sources of the United States and its subregions from 1929 to the present. The second part of the paper examines the changes in sources of personal income of the 702 most farm-dependent counties in the United States. The third section includes a more detailed analysis of the current sources of personal income of farm-dependent counties. The final section of the paper calls for more study regarding the relative rural versus urban impact of specific public policies. It is the purpose of the paper to establish the parallel importance of both farm and nonfarm sectors to rural economic well-being.