Investigating Economic Diversity in Eastern Kentucky’s Area Development Districts

This study investigates a range of economic diversity indicators for local and area economies in eastern Kentucky in order to improve our understanding of their composition and the concomitant risks and opportunities they face going forward. We base our analysis on data obtained from the Appalachian Economic Diversity Web Tool, a website that was sponsored by the Appalachian Regional Commission in order to assist community and organizational efforts aimed at fostering sustainable economic development in the region. Specifically, we examine economic diversity within and between six Area Development Districts (ADDs) in eastern Kentucky in terms of their industrial, functional, and occupational diversity. We also evaluate ADD-level data in the context of economic diversity data for Kentucky, Central Appalachia, and the United States. Finally, we review our findings in light of the most recent economic development strategic plans developed by the ADDs included in our study. Results from this study should assist area leaders and communities as they continue their efforts to improve the quality of life in eastern Kentucky