An evaluation of economic benefits and costs of industrialization in rural communities in Texas

Vita.This study evaluated net economic impact of industrialization on private, municipal government, and school district sectors of rural communities in Texas. Specific objective were: (1) to estimate direct, indirect, and induced benefits and costs within major sectors of the community's economy; (2) to estimate effects of industrialization on income distribution in rural communities; and (3) to estimate the distribution of benefits and costs among selected groups of individuals within the community. The conceptual basis, methodology, and data requirements for meeting these objectives were also described. Results of the benefit-cost model under varying assumptions of local community development, time, resource use and resource mobility showed that communities experience substantial net gains as a result of industrialization. Private sectors received the largest percentage of the economic gains. In the public sector, municipal government and school district net impacts were found to be positive in all but one instance in which school district industrialization costs exceeded benefits. The analysis showed that public sectors were sensitive to industry type in that net gains were highly related to the industry's capital investments and its resultant ad valorem tax revenue. Results showed that a substantial amount of economic impact spilled over from the local community to the surrounding county and region indicating that rural industrialization programs that include a geographic area larger than the local community may lead to a more equitable showing of benefits and costs.