The Pattern and Impact of the Filter down Process in Nonmetropolitan Kentucky

An important facet of the changing pattern of economic activity in the United States has been the decentralization of branch plant operations to nonmetropolitan areas. Standardization of production processes in metropolitan areas permits the extension of operations into smaller communities to maintain continued cost savings for the parent firm. The research examines the role of transportation, industrial sites, labor supplies, and labor competition as determinants of the spatial development of branch firms in nonmetropolitan Kentucky. The analysis also focuses on (1) branch employment changes between 1970 and 1980 disaggregated by town size, (2) changes in the sectoral distribution of plants between 1950 and 1980, and (3) the current distribution of branch plants within SIC categories. The results suggest that community infrastructure rather than labor supply alone is important in accounting for employment levels. In addition, short-term employment changes are more a function of external as opposed to int...