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An Area Economic Development Impact Model for Extension Application

Published online by Cambridge University Press:  28 April 2015

James R. Nelson
James R. Nelson*
Affiliation:
Department of Agricultural Economics, Oklahoma State University
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Extract

Most area economic development impact models are based on the premise that the basis of an area economy is a group of local firms which produce goods and services for sale outside the area. Agriculture, mining, and manufacturing firms typically make up a large part of such a group of exporting or basic firms. However, in most communities and some larger areas, many service firms (wholesale, retail, transportation, finance, medical, utilities) sell some of their products outside the local economy. These exports are part of the area's economic base. That portion of the output of the firms in an area which goes to satisfy local demands is nonbasic output. Area employment used to produce basic and nonbasic goods and services can be classified similarly as basic and nonbasic employment, respectively.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 10 , Issue 1 , July 1978 , pp. 89 - 93
Copyright
Copyright © Southern Agricultural Economics Association 1978

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References

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