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The Location Decision of Hardwood Manufacturing in the Northern and Central Appalachian States

Published online by Cambridge University Press:  10 May 2017

Stephen M. Smith ,
John E. Bodenman  and
Stephen B. Jones
Stephen M. Smith
Affiliation:
Department of Agricultural Economics and Rural Sociology, The Pennsylvania State University
John E. Bodenman
Affiliation:
Department of Agricultural Economics and Rural Sociology, The Pennsylvania State University
Stephen B. Jones
Affiliation:
School of Forest Resources, The Pennsylvania State University
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Abstract

This study's objective is to identify and understand the factors important to hardwood processors’ location decisions in the northern and central Appalachian region. Concepts from neoclassical and behavioral location theories were integrated to develop a general framework for analyzing these decisions. Logit regression analysis was used to determine those establishment characteristics related to the likelihood of location search. To a great extent, establishments locate based on personal ties and do not conduct searches. Most variables found to influence the likelihood of search are not controllable by state or local governments. The implications are that existing establishments should be targeted for retention and expansion, rather than focusing on recruitment.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 21 , Issue 1 , April 1992 , pp. 1 - 9
Copyright
Copyright © 1992 Northeastern Agricultural and Resource Economics Association 

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Footnotes

The authors thank the Journal‘s anonymous reviewers for their helpful comments. Support for this project was provided by the United States Forest Service, Northeastern Forest Experiment Station Cooperative Agreement no. 23-445, and The Pennsylvania State University Agricultural Experiment Station.

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