A Factor Analysis Methodology for Analyzing the Factors that Contribute to Economic Development in the state of Tennessee

Tennessee has been gifted with a good geographic location in Southeastern part of America and with abundant natural resources ready to be harnessed. Big companies such as Fedex, Saturn, etc. have their bases set up in Tennessee since it is accessible by rail, road and air and also because the cost of transportation is very competitive. In spite of the significant advantages, Tennessee has suffered and lost many big companies to neighboring states.

Understanding the factors that have shaped the industry’s growth is relevant and quintessential to the design, planning and implementation of policies that support sustainability on a long-term basis for Economic Development of Tennessee.

This research is mainly focused on identifying the reasons or factors that help in

a) Attracting companies to Tennessee

b) Sustaining the existing companies in Tennessee.

The research takes us a step ahead by grouping the factors into common factors by using a new pathfinder statistical technique, unique to this type of research that will simplify the task of handling the many factors that influence the corporate decision process. The statistical analysis is further supported with specific discussions of the ideas provided by current industries and Economic Development boards that are located in the State of Tennessee and are focused on attracting new businesses into the state.