Social infrastructure and community economic development strategies: the case of self-development and industrial recruitment in rural Iowa

Abstract

This research examines the relationship between features of community social organization and the existence of two contrasting types of economic development, self-development and industrial recruitment in rural places. Self-development is an endogenous form of development relying primarily on entrepreneurism and local resources. Industrial recruitment is an exogenous form of development that seeks outside investors and firms to locate in the community. Using data collected in a statewide sample of 99 Iowa communities, we hypothesize that social infrastructure, the group-level interactive aspects of community organizations and institutions, is more strongly related to the existence of self-development than industrial recruitment. A key finding is that social infrastructure, measured by the existence of active community organizations, businesses that support local community projects, community-wide fund-raising capacity, and extra-local linkages to peer communities and state government, is positively associated with the existence of self-development. The relationship between social infrastructure and industrial recruitment is also significant but more modest. Findings indicate that a community's social organization can be a resource for development, but may be more appropriate for endogenous development efforts than exogenous ones.