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Rural Industrialization: A Local Income Analysis

Rural industrial development is advocated as a means of improving the economic status of residents in lagging rural areas. A recent USDA report stated, “One of the main problems in Rural America is the lack of employment opportunities. With advances in agricultural technology, farm-related jobs are decreasing and other forms of employment must be found”. The purpose of this paper is to examine the economic impact of industrial expansion in rural areas. The specific emphasis will be the potential effect on locally disadvantaged people – the poor and underemployed. The question is not are jobs and income opportunities created, but for whom are they created. Ideally, those who benefit are the underemployed, poor and near poor; but this need not be the case.