A Linkage Approach to Industrial Location

Authors

  • DONALD ANDERSON,

    1. Donald Anderson is a research economist and Stephen A. Johnston is a program director at Research Triangle Institute, NC 27709. The authors wish to acknowledge the support of Alabama Power Company. They also wish to thank Jim Coleman and Mike Scott of Alabama Power, and Jennifer Whaley, formerly of Research Triangle Institute, and to thank two anonymous referees for helpful comments.
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  • STEPHEN A. JOHNSTON

    1. Donald Anderson is a research economist and Stephen A. Johnston is a program director at Research Triangle Institute, NC 27709. The authors wish to acknowledge the support of Alabama Power Company. They also wish to thank Jim Coleman and Mike Scott of Alabama Power, and Jennifer Whaley, formerly of Research Triangle Institute, and to thank two anonymous referees for helpful comments.
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ABSTRACT

Access to markets and raw materials is nearly always mentioned in industrial location studies as an important locational factor. This article demonstrates a methodological approach based on inter-industry linkages and using secondary data to identify target industries for economic development initiatives. In this application we characterize Alabama's industrial base, identify industries with strong forward and backward linkages to base Alabama industries, and highlight a subset of especially good prospects.

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