Masters Theses

Date of Award

12-1965

Degree Type

Thesis

Degree Name

Master of Science

Major

Agricultural Economics

Major Professor

Joe A. Martin

Committee Members

Charles L. Cleland, Stanton P. Parry

Abstract

Industrial development affects key economic variables in an economy. All variables will not be affected evenly. Some effects of industrial development will be good for the people involved. Other effects will involve changes that will be costly to the people involved. The question of industrial development is a vital one today for rural communities.

Civic leaders have dual goals in promoting industrial development. They seek to broaden the local property tax base while providing employment opportunities for a growing population. These local leaders use different means to acquire new industry. Some local leaders buy up land sites to donate to new industry. Buildings are often provided to new industry for little or no rent. These leaders believe that the whole economy will benefit in the long run. They realize that new industry will boost the economy's income stream. They know that without new investment, the income stream will never increase.

Some people doubt the importance of new investment. The naturalists say industry will ruin the peace and beauty of the rural landscape. The conservatives claim that industrialization weakens the family farm position--leading to lower morals and higher crime rates. Various kinds of studies have attempted to show the different effects of industrialization. Usually, a study is based upon one effect of industrialization. But, none of the studies examined by this author deal with an overall measurement of the effects of new industry. To do so, one would have to measure economic variables on the same scale with social variables. In this study, we were only interested in the economic variables--the growth effects brought about by new industry.

It was assumed in this study that there is a relationship between new investment and other economic variables. Investment is considered the prime factor in economic growth. Other variables are a result of new investment. Here, the author wishes to define new investment as autonomous-- making new investment independent of present economic activities. This assumption does not imply that autonomous investment is more important than accelerated investment--new Investment in existing economic activities. This study intends to highlight the role of investment in economic growth.

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