ECONOMIC DEVELOPMENT EFFECTIVENESS OF MULTICOMMUNITY DEVELOPMENT ORGANIZATIONS

Abstract

Multicommunity development organizations (MDOs) are one strategy implemented by rural communities to promote economic growth. In this paper we evaluate the effectiveness of these organizations and the attributes that influence their success in attracting and retaining jobs. Several factors within MDO control were found to influence the ability of such organizations to attract new employment opportunities. Organizations with larger budgets and staff were found to be more effective in job creation. Traditional economic and locational variables, as well as the institutional characteristics of the MDOs, were important when evaluating their success in job retention. Older MDOs with larger budgets in regions with higher levels of manufacturing employment, higher average earnings per job, and lower per-capita income were most successful at retaining existing employment opportunities.