The role of industrial sites in increasing the industrial development potential of Appalachian Ohio

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University
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BOO N /I t B HOAD, ANN ARBOR, Ml -IfilOli
18 Bl Dl BHD BOW, LONDON WC1H 41 J. t NOLAND
790822 3
SUL A IMAN , JAMA LLUD I N DIN
THE ROLE OF INDUSTRIAL SITES IN INCREASING
THE INDUSTRIAL DEVELOPMENT POTENTIAL OF
APPALACHIAN OHIO.
THE OHIO STATE UNIVERSITY, PH.D., 1978
University
Microfilms
International
TOO N /I I H IU lAU. AfJN AHHOM. Ml
THE ROLE OF INDUSTRIAL SITES IN INCREASING
THE INDUSTRIAL DEVELOPMENT POTENTIAL OF APPALACHIAN OHIO
DISSERTATION
Presented in Partial Fulfillment of the Requirements for the
Degree Doctor of Philosophy in the Graduate School of
the Ohio State University
by
Jamalludin Bin Sulaiman, B.S., M.S.
The Ohio State University
1978
Reading Committee: Approved by:
Professor Leroy J. Hushak
Professor Fred J. Hitzhusen
Professor Henry L. Hunker Department of Agricultural
Professor George W. Morse Economics and Rural Sociology
ACKNOWLEDGMENTS
The author is extremely grateful to the National Univer­
sity of Malaysia for financing his education at the University
of California, Davis and at the Ohio State University,
Columbus. The author is also extremely grateful to the
following persons:
To his adviser, Professor Leroy J. Hushak, for his guidance
and counsel throughout the author's graduate program,
To members of his reading committee, Professors Fred J.
Hitzhusen, Henry L. Hunker, and George W. Morse, for their
helpful suggestions on many aspects of this research, and
To his wife, Salma, for her patience and understanding.
And, finally, special thanks to her for typing all the
manuscripts related to this dissertation.
VITA
October 20, 19^6 . . . . Born - Yen, Kedah, Malaysia
1969 ...................... Diploma in Agriculture
College of Agriculture, Malaysia
1973 ...................... B.S., University of California,
Davis, California
19^9 ...................... M.S., University of California,
Davis, California
FIELDS OF STUDY
Major Field: Agricultural Economics
Studies in Economic Theory. Professors Edward J . Ray,
Tetsunori Koizumi, and Sam Logan (U.C.D.)
Studies in Quantitative Methods. Professors Francis
Walker, Leroy J. Hushak, and Gordon A. King (U.C.D.)
Studies in Public Finance and Resource Economics.
Professors J. S. Henderson, Fred J. Hitzhusen, and
Leroy J. Hushak
iii
TABLE OF CONTENTS
Page
ACKNOWLEDGMENTS ............................................ ii
VITA
LIST OF TABLES
LIST OF FIGURES
Chapter
T. INTRODUCTION ........................................... 1
Rural Industrial Development ................... b
Appalachian O h i o .................................. 10
Objectives of the Study.......................... 15
D a t a ................................................ 16
IT. THEORETICAL CONSIDERATIONS .......................... 19
The Location Factors ............................. 20
Principal Location Factors ...................... 21
Transportation ............................... 21
Labor........................................... 2b
Raw Materials and Markets................... 25
Utilities....................................... 27
Other Factors....................................... 28
Taxes........................................ 28
Industrial Sites ............................. 2°
Implications of Factors of Location for
Community Development ............................. 30
Model Formulation.................................. 33
Industrial Sites ............................. 3b
Population Characteristics ................. 35
Location Characteristics ................... 38
Transportation Availability ................. 39
Other Characteristics........................ ^0
Summary ............................ ^+0
DESCRIPTIVE ANALYSES OF INDUSTRIAL SITES,
INDUSTRIAL PARKS, AND THE APPALACHIAN REGION
Sources of Data . . . . - .................
IV
Ownership/Sponsorship ............................. k6
Z o n i n g ........................ ..................... A- 8
Railroad Services .................................. 51
Classification of Ownership/Sponsorship of
Industrial Sites by Source of Information . . . 51
Industrial Site Characteristics by Population
Group................................................ 5^
Characteristics of Region by Population
Group................................................ 57
Relationships of Related Characteristics of
Region to Employment and Income ................. 60
Industrial Parks .................................. 6A
Summary.............................................. 73
IV. ANALYSES OF R E S U L T S .................................. 7^
The Relationship of Acres of Industrial Sites
and Industrial Growth ............................. 80
Regression Results ............................... 8l
Employment Change Models ........................ 83
Percent Employment Change Models ............... 90
Income (Payroll) Change Models ................. 95
Percent Income (Payroll) Change Models . . . . 100
The 'Best' Models.....................................105
V. SUMMARY, CONCLUSIONS, AND IMPLICATIONS ............ 119
Summary.................................................119
Conclusions............................................ 122
Implications..........................................12*t
APPENDIXES
A. Questionnaires............................................130
LIST OF REFERENCES.............................................. 13*+
v
LIST OF TABLES
Table Page
1. Total Industrial Employment and Number of
Establishments in Appalachian Ohio . . . . . . . . 8
2. Summary Characteristics of the Appalachian
Ohio Co un t i e s ......................................... 12
3. Sources of Industrial Site Data: Number of
Sites, Mean Size, Total Site Acreage, and
Their Respective Percentages, Appalachian
Ohio, 1978 .............................................. *+3
k. Summary of Industrial Site Characteristics:
Mean, Total Size, and Related Statistics,
By County, Appalachian Ohio, 1978 kk
5. Industrial Site Ownership/Sponsorship:
Number of Sites, Mean Size, Total Site
Acreage, and Their Respective Percentages,
Appalachian Ohio, 1978 ............................ *+7
6. Industrial Site Zoning Category: Number of
Sites, Mean Size, Total Site Acreage, and
Their Respective Percentages, Appalachian
Ohio, 1978 .............................................. 50
7. Industrial Sites With and Without Railway
Services: Number of Sites, Mean Size, Total
Site Acreage, and Their Respective Percentages,
Appalachian Ohio, 1978 ................................ 52
8. Industrial Site Ownership/Sponsorship By
Source of Information, Appalachian Ohio,
1 0 7 8 ..................................................... 53
9. Number of Sites, Total Site Size, and Their
.’leans, By Population Group, Appalachian
Ohio, 1 9 " t .............................................. 56
10. Mean Values of Selected Characteristics of
The Appalachian Region By Population ................ 5?
vi
11. Mean Values of Selected Characteristics of
The Appalachian Region By Industrial
Employment ........................................... 61
12. Mean Values of Selected Characteristics of
The Appalachian Region By Industrial
Income ................................................ 63
13. Employment, Size, Occupancy, and Some
Descriptive Statistics of Industrial Parks
in Appalachian O h i o .................................. 66
1^. Number of Industrial Parks, Total Acreage,
and Total Employment, By Population Group,
Appalachian Ohio, 1978 ............................... 69
15. Employment and Number of Firms, By Two-Digit
Standard Industrial Classification (SIC) in
Industrial Parks, Appalachian Ohio, 1978 .......... 71
16. Estimate of Acreage of Industrial Sites
in Logarithm Functions ............................... 82
17. Estimate of Industrial Employment Change
(1966-1976) Functions ............................... 8A
18. Estimate of Percent Employment Change
(.1966-1976) Functions............................... 91
19. Estimate of Industrial Payroll Change
(1966-1976) Functions .............................. 96
20. Estimate of Percent Payroll Change
(1966-1976) Functions .............................. 101
21. Estimate of Industrial Employment Growth
(1966-1976) Functions .............................. 106
vii
LIST OF FIGURES
figure Page
1. Appalachian Ohio Counties ........................... 2
2. Zoning in O h i o ............................... ^9
Z. Observed and Predicted Employment Change
Values Against Acres of Industrial Sites . . . . 110
A. Observed and Predicted Percent Employment
Change Values Against Acres of Industrial
Sites.................................................. Ill
n Observed and Predicted Employment Change
v
Values Against Population.......................... ll^t
c. Observed and Predicted Percent Employment
Change Values Against Population ................. 115
viii