Abstract
Natural amenities have always been important to rural America. Places with high natural ameni-ties enjoyed higher levels of employment, population, and income growth. However, the relationship between natural amenities and employment growth varies by industry and natural amenity type. Natural amenities do support the quality of life in rural areas. Yet, their impacts on service and retail sectors are more pronounced, with landscape amenities having greater impacts than weather amenities.
Highlights
Natural resources are a primary source of economic growth in rural areas
Estimations are conducted on total employment growth and employment growth in the manufacturing, service, and retail sectors
Results of this paper support the hypothesis that natural amenities, as measured by the USDA index, enhance rural employment growth
Summary
Natural resources are a primary source of economic growth in rural areas. American pioneers first forged west following the promises of rich farmland and California gold. Rural outposts grew into small towns and large cities Their growth depended on their ability to access natural resources and the water highways of the American west. Natural amenities support growth in tourism-based industries, industries serving retirees, and industries employing the creative class This evidence suggests that rural areas could utilize natural amenities when forming an economic development strategy. Second we analyze whether the impacts of natural amenities on employment growth vary by the type of amenity – weather or landscape To accomplish this objective, natural amenity measures are incorporated into a model of rural employment growth at the county level that controls for other factors – urbanization, localization of industries, market access, labor characteristics, transportation, and fiscal policies – that are related to employment growth. The second section develops an empirical model to analyze the relationship between natural amenities and rural employment growth controlling for other growth factors. The fourth section presents and discusses the empirical results, and the last section provides a concluding summary
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