State- and county-level determinants of food manufacturing establishment growth: 1987-93

Empirical models are developed and estimated to identify economic determinants of food manufacturing establishment growth between 1987 and 1993. Separate growth equations are estimated for states and counties at the three-digit SIC level. Significant agglomeration diseconomies are found to exist for nearly all subindustries at the county level, but not at the state level. The ability of rural counties to attract food processors to create local employment opportunities and market outlets for farmers varies considerably across subindustries.