scholarly journals Market Concentration and Natural Resource Development in Rural America

2021 ◽  
Author(s):  
Tom Mueller ◽  
Jesse Shircliff ◽  
Marshall Steinbaum

Natural resource development, both extractive (oil, gas, mining, timber) and non-extractive (tourism, real estate, outdoor recreation), has been found to negatively impact economic prosperity in rural America. One mechanism recently proposed for why this occurs is high levels of labor market concentration, or oligopsony. Oligopsony occurs when there are few employers within a labor market and can lead to suppressed wages and a power imbalance between employers and workers. In this paper, we test the moderating effect of labor market concentration on the relationship between natural resource development and per capita income and poverty in rural America from 2010 to 2016. By comparing results between extractive and non-extractive development, as well as manufacturing, we show that labor market power attenuates the beneficial relationship observed at low levels of specialization in natural resources—particularly for extractive forms of development. Further, by finding no significant relationship between manufacturing specialization and economic prosperity, nor any moderating effect of labor market concentration in the case of manufacturing, we demonstrate that natural resource development and labor market concentration have a unique relationship with rural American economic prosperity.

2020 ◽  
pp. 089124242098451
Author(s):  
J. Tom Mueller

Research suggests dependence on natural resource development leads to decreases in per capita income, increases in inequality, and elevated poverty. Natural resource development generally takes two forms—extractive (e.g., oil and gas, mining, timber) and nonextractive (e.g., tourism, recreation, real estate). However, research has rarely examined both in tandem. Drawing on the concept of dependence (i.e., overspecialization), the author tests the hypothesis that increasing levels of both forms of development were associated with diminishing returns to economic prosperity—operationalized as per capita income, inequality, and poverty—in rural America over the period of 2000 to 2015. Extractive development exhibited the expected relationship in remote rural counties for all outcomes, while nonextractive development had a generally negative relationship with per capita income, a positive relationship with poverty, and no relationship with inequality. Support for the overall hypothesis was limited due to the returns of nonextractive development being more negative than expected.


2019 ◽  
Author(s):  
Tom Mueller

Research suggests dependence upon natural resource development leads to decreases in per capita income, increases in inequality, and elevated poverty. Natural resource development generally takes two forms, extractive (e.g. oil and gas, mining, timber) and non-extractive (e.g. tourism, recreation, real estate). However, research has rarely examined both in-tandem. Drawing on the concept of dependence (i.e. over-specialization), I test the hypothesis that increasing levels of both forms of development was associated with diminishing returns to economic prosperity— operationalized as per capita income, inequality, and poverty—in rural America over the period of 2000 to 2015. Extractive development exhibited the expected relationship in remote rural counties for all outcomes, while non-extractive development had a generally negative relationship with per capita income, a positive relationship with poverty, and no relationship with inequality. Support for the overall hypothesis was limited due to the returns of non-extractive development being more negative than expected.


2005 ◽  
Vol 10 (1) ◽  
Author(s):  
Retno Woro Kaeksi

Development is a certain coveted by all people in which included the natural resource development of living members, because a large part of human necessity is supplied by the natural resource. Thus, the more population the more necessities of the natural resource consumed. Natural resource availability is limited while the development is in progress. In such condition the resource is getting decrease and finally destroyed, unless we develop its and make a provision in replacement. Acording to what  is said by, it is needed a human knowledge about environmental concept of living members in order that in the desired development realization an environmental conservation will be protected permanently.


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