1978 DOE SPS Economic Demographic Issues

In order to conduct the required research, the theories of industrial location reviewed in this section are needed to predict what types and levels of basic economic activity may be attracted to rectenna-bearing regions. Based on these predictions of industrial attraction, empirical methods can be used to estimate employment and population changes that may derive from relocations of manufacturing activity. There are, however, two distinct schools of thought about the causal relationship between economic change and population movement. Export-base theory holds that population follows change in economic activity and employment; whereas another school of theorists (most notably represented by Borts and Stein17 and Muth18) contend that change in economic activity and employment follow population change. The most important differences between these theories are described in Sec. 3 and the Appendix. A case is made that export-base theory is the more valid one upon which to build a methodology for estimating changes in regional employment and population. It is also discussed in Sec. 3 how a methodology derived from export-base theory can be used to estimate the employment and population effects of industrial relocations on regional or local levels.

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