What Causes Spatial Variations in Economic Development in the United States?

Posted: 11 Apr 2008

See all articles by Junjie Wu

Junjie Wu

Oregon State University - Department of Applied Economics

Munisamy Gopinath

Oregon State University - Department of Applied Economics

Date Written: 2007-10

Abstract

This article examines the causes of spatial disparities in economic development in the United States. A theoretical model is developed to analyze the location decisions of firms and households. An empirical model is estimated to quantify the contribution of alternative factors to spatial variations in wage, employment density, housing price, and land development density. Results suggest that remoteness is a primary cause of spatial disparities in economic development, while natural amenities are a major determinant of housing prices. Despite the dominant role of geography, public investments in infrastructure and human capital development could contribute to economic development in remote areas.

Suggested Citation

Wu, Junjie and Gopinath, Munisamy, What Causes Spatial Variations in Economic Development in the United States? (2007-10). American Journal of Agricultural Economics, Vol. 90, No. 2, pp. 392-408, May 2008, Available at SSRN: https://ssrn.com/abstract=1119017 or http://dx.doi.org/10.1111/j.1467-8276.2007.01126.x

Junjie Wu (Contact Author)

Oregon State University - Department of Applied Economics ( email )

213 Ballard Extension Hall
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Corvallis, OR 97331-4501
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HOME PAGE: http://osu.orst.edu/Dept/ag_resrc_econ/faculty2/wu

Munisamy Gopinath

Oregon State University - Department of Applied Economics ( email )

213 Ballard Extension Hall
Corvallis, OR 97331-4501
United States
541-737-1402 (Phone)
541-737-2563 (Fax)

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