Economic Development Quarterly

This study integrates life-course theory and mobility research to explore livability factors that attract migrants in different age groups between rural and urban counties in the United States. Place livability is measured by economy, housing market, natural amenity, neighborhood, civic and social engagement, and health. Migrants are grouped into young, middle-aged, and older adults. Results of Structural Equation Modeling show that, as people age, the attractiveness of place shifts from a focus on the economy and housing market to the neighborhood and engagement. Rural communities, which rank the highest on engagement, attract working aged and older migrants. Natural amenities and lower housing costs also attract migrants moving to rural counties. This study suggests that the natural environment and social environment could make up for the lack of accessible physical design in rural communities. Affordable housing and an inclusive community are key to retaining and increasing the population in rural communities.

Research suggests dependence on natural resource development leads to decreases in per capita income, increases in inequality, and elevated poverty. Natural resource development generally takes two forms—extractive (e.g., oil and gas, mining, timber) and nonextractive (e.g., tourism, recreation, real estate). However, research has rarely examined both in tandem. Drawing on the concept of dependence (i.e., overspecialization), the author tests the hypothesis that increasing levels of both forms of development were associated with diminishing returns to economic prosperity—operationalized as per capita income, inequality, and poverty—in rural America over the period of 2000 to 2015. Extractive development exhibited the expected relationship in remote rural counties for all outcomes, while nonextractive development had a generally negative relationship with per capita income, a positive relationship with poverty, and no relationship with inequality. Support for the overall hypothesis was limited due to the returns of nonextractive development being more negative than expected.

The authors estimate the value of public infrastructure using a panel of rural and urban counties in the United States from 1970 to 2012. Regression estimates imply public infrastructure increases employment more in urban counties, while improving property values more in rural ones; positive effects on income are similar. Spatial equilibrium modeling suggests public capital has similar quality-of-life and productivity benefits in urban and rural areas but does more to reduce costs of providing housing in urban ones. While public investments in rural and urban counties appear to pass conventional cost–benefit tests, dollar-per-dollar they are more valuable in urban counties.

The Main Street Program is a popular smaller-scale economic development strategy used to revitalize historic town centers across the rural United States. In this article, a difference-in-differences design using longitudinal business establishment data is implemented to estimate the program’s causal impact on job and establishment growth in downtown retail districts. Using a pooled sample of four Midwest states, the author found no significant effect of Main Street Program adoption on downtown jobs or establishments. However, for each individual state, a substantial degree of structural heterogeneity across states exists. Iowa emerges as a state where the Main Street Program appears to yield its hypothesized economic benefits to the downtown business districts of participating communities. These findings suggest that Main Street Program participation effects are not generalizable across states and that implementation and local context matter.

This study assesses the efficacy of the Small Business Innovation Research Program on innovation, employment, and business formation in small and nonmetropolitan counties. The primary goal is to further understand rural innovation and growth process through government intervention on small business development. Using panel data and employing fixed-effect models, the results suggest that, compared with large metropolitan counties, the Small Business Innovation Research Program may not be an effective program to generate employment and entrepreneurship opportunities in small and nonmetropolitan regions, but it could be a viable source to improve rural innovation outcome. The geographical effects of the program are heterogeneous across implementation years and award agencies. This study contributes to the innovation policy agenda in small and nonmetropolitan regions, which is an important and emerging topic in the field.

Rural economic development strategies increasingly focus on “homegrown” economic policies, including investing in entrepreneurial development. However, few studies have evaluated the effectiveness of these strategies, in part because of data constraints. Using a mixed-methods approach, basic t-tests, fixed-effect probit regression, and propensity scoring techniques on data from the Small Business Innovation Research Program and the Rural Establishment Innovation Survey, this article tests the effectiveness of federal policies in inducing innovative activity in rural and urban establishments. The authors also explore indirect comparisons between rural and urban establishments. They find that Small Business Innovation Research (SBIR) awards can increase the likelihood that an establishment will act innovatively and that this effect may be larger in rural settings than in urban settings. Results suggest that targeted public investment can induce rural innovation.

This study contributes to the current understanding of what drives physicians to practice in rural areas by analyzing new, comprehensive survey data of practicing physicians in the United States. This research confirmed that rural origin is a powerful and reliable predictor for rural practice and revealed that new and experienced physicians have different priorities regarding location choice. Physicians choosing rural practice locations are more likely to be motivated by compensation, the resemblance of the environment to the one they grew up in, patient needs, and prenegotiated service obligations or visa/immigration status. They are less likely to attribute their location choice to social network proximity. These findings have important implications for salary incentives and policy initiatives aimed at increasing the rural physician workforce. The results of this study will help decrypt the difficulties rural areas face in attracting and retaining medical and other professionals and inform policy development.

The U.S. government has supported rural hospitals through direct subsidies and staff recruitment programs. However, little is known about the long-run impact of large-scale changes to rural health care. The authors explore the long-run trajectory of Appalachian counties where a coal mining union introduced a pioneering rural health care program in the 1950s, anchored by a chain of high-quality hospitals. Hospital beds per capita in counties where the union built its hospitals are persistently high through 2006, even when compared to similar counties and accounting for a variety of supply- and demand-side factors. In particular, union counties defied a national hospital consolidation trend starting in the 1980s. Results are consistent with a supply-side explanation where the scale and/or innovation of the union's investment allowed hospital markets to thrive and attract patients from a broad geography.

While the concept of rurality has been debated in academic and professional literature for decades, less research has been done on a practical typology that can guide localized economic development strategies. This paper adds to the growing body of literature in search of a more nuanced definition of rural by applying unsupervised machine learning (ML) to the abundance of existing county-level data in the United States. The authors illustrate how this method can lead to a new county typology, named after economic development strategies, that accounts for idiosyncrasies in resources, opportunities, and challenges. This research serves as a practical step toward tractable, heterogeneous classifications that can inform the work of federal, state, and local policy makers, economic development practitioners, and many others.

This study demonstrates the application of affinity propagation as a data-driven approach to identifying and mapping typologies of place along the urban-rural continuum. The authors characterize Zip Code Tabulation Areas using demographic, economic, land cover, and accessibility to transportation infrastructure, which results in 22 clusters, 15 of which have a major rural component. The spatial pattern of these clusters varies, reflecting the heterogeneity in U.S. rurality. Rural is not a single concept that can be simply defined by population density. By comparing three economic indicators before and after the global financial crisis of 2007 to 2012, the authors find that the degree of economic recovery is captured by rural typologies. They compare both the methodological results and analysis of socioeconomic resilience to two of the most used threshold-based regional typologies, one developed by the U.S. Department of Agriculture Economic Research Service and one used by the American Communities Project.

This article proposes a new economic development framework – regional economic connectivity – to address the deep and growing urban-rural divide. Regional economic connectivity calls attention to the benefits to local communities of fostering connectivity to industry clusters and economic specializations that are already present in their broader regions. This analysis examines the relationship between growth and connectivity across all U.S. counties and their regions from 2010 to 2016 and finds that local cluster employment grows faster when those jobs are part of regional clusters. The magnitude of the relationship between growth and connectivity varies across the urban-rural hierarchy, with particularly strong results for micropolitan communities. A targeted analysis of Virginia is presented to illustrate these trends and implications for practice.