The economic effect of manufacturing in rural counties in the East Tennessee development district

Nonmetropolitan counties in the Southeast have experienced economic structural changes for the past twenty years. These structural changes have redefined the economic base of some rural economies in this region. These changes are largely attributed to increases in employment in the manufacturing sector.

This new economic growth in rural areas is the result of two major economic shifts in the nation; industrial decentralization from the North to the South, and a shift from metropolitan areas to nonmetropolitan areas. The manufacturing growth rate was highest for counties at the greatest distance from MSAs, and it was even higher for counties up to 50 miles from MSAs than for metropolitan areas (Heckman and Smith, 1982). Manufacturing employment in the southeast, and especially the rural areas grew tremendously.

This study researched the economic effects of manufacturing in the nine rural counties of the East Tennessee Development District. The study concentrated on manufacturing growth at the regional level. Manufacturing in the four Southeastern States (Tennessee, North Carolina, South Carolina, and Mississippi) was studied and compared.

Other key issues addressed in this study included theories of nonmetropolitan growth, the economic benefits resulting from manufacturing growth, and economic development alternatives available to smaller nonmetropolitan areas.