Advanced Manufacturing Plant Location and Its Effects on Economic Development, Transportation Network, and Congestion

GDOT Research Project No. 12-24

91 Pages Posted: 6 Mar 2017

See all articles by Vivek Ghosal

Vivek Ghosal

Rensselaer Polytechnic Institute; Center for Economic Studies and Ifo Institute for Economic Research (CESifo)

Frank Southworth

Government of the United States of America - Oak Ridge National Laboratory

Date Written: February 1, 2017

Abstract

The project explored the linkages between industry dynamics and economic activity, and the macro-congestion aspects of freight transport. The Kia Motors manufacturing plant near West Point, Georgia was selected for case study. The principal study effort went into collecting data elements in sufficient detail to allow for in-depth empirical analysis. This included collecting economic activity and supply chain data associated with the growth in activities both within the plant and among the many parts suppliers that have moved into the area to serve it. Impact variables examined include those related to employment in a wide range of occupations, schooling, educational attainment, and population and migration patterns. A series of economic multipliers are reported, showing some significant differences between counties with component supplier activity and other counties in the region. The project also developed a detailed spatial mapping and explored the derivation of supply chain cost estimates associated with both domestic and international movements of auto industry inputs and outputs, involving individual and multimodal highway, rail, and waterway shipments.

Keywords: Plant Location, Economic Impacts, Economic Multipliers, Freight Transportation Flows and Costs, Automobile Manufacturing Supply Chain, Multimodal Analysis, Global Shipments Modeling

JEL Classification: D00, D20, F00, H00, H70, L00, L60, L90, O22, R00, R40

Suggested Citation

Ghosal, Vivek and Southworth, Frank, Advanced Manufacturing Plant Location and Its Effects on Economic Development, Transportation Network, and Congestion (February 1, 2017). GDOT Research Project No. 12-24, Available at SSRN: https://ssrn.com/abstract=2925939 or http://dx.doi.org/10.2139/ssrn.2925939

Vivek Ghosal (Contact Author)

Rensselaer Polytechnic Institute ( email )

110 8th Street
Troy, NY 12180
United States
518-276-3868 (Phone)

HOME PAGE: http://https://faculty.rpi.edu/vivek-ghosal

Center for Economic Studies and Ifo Institute for Economic Research (CESifo)

Poschinger Str. 5
Munich
Germany

HOME PAGE: http://www.cesifo.de

Frank Southworth

Government of the United States of America - Oak Ridge National Laboratory

1 Bethel Valley Road, P.O. Box 2008, Mail Stop 608
Room B-106, Building 5700
Oak Ridge, TN 37831
United States

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