Regional Dependence and Location of the Wood Products Sector in the Northeastern United States: Unique Attributes of an Export-Based Industry
Keywords:Wood products, primary processors, secondary processors, reconstituted processors, firm location, location quotient
AbstractNatural resources have long been a source of both raw material supply and value added manufacturing in many rural regions across North America. Contemporary resource management and rural development planning increasingly emphasize the integration of raw material production with forward-linked processing activities. Empirical studies suggest that wood processors locate proximate to raw material supplies. Assessing the regional firm location decisions of wood processors, however, raises important and complex issues of sectoral heterogeneity. In this paper, we initiate analysis of firm location in three wood processing sub-sectors through descriptive location quotients of primary, secondary, and reconstituted wood products manufacturing sectors. Explanatory variables that support these sectoral specific location quotients include proxies for raw material inputs and output markets. Results suggest that important differences exist in locational dependency attributes between wood products sub-sectors.
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