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A Consumption Base Theory of Development: An Application to the Rural Cultural Economy
- Article from:
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Agricultural and Resource Economics Review
- Article date:
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April 1, 2007
- Author:
- Markusen, Ann
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Copyright informationCopyright Northeastern Agricultural and Resource Economics Association Apr 2007. Provided by ProQuest LLC. (Hide copyright information)
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Export base theory, which posits that overall regional growth is a function of external sales of locally produced goods and services, dominates economic development practice. But the consumption base can also serve as a growth driver, especially in small towns and rural areas. Local investments may induce residents to divert expenditures into local purchases, attract new and footloose residents and tourists, and revitalize aging town centers. A consumption base approach is not reducible to import substitution, but seeks to serve latent demand and alter the broad portfolio of goods and services purchased locally. I present the analytics for a consumption base theory and demonstrate how ...
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