ABSTRACT
This chapter describes an industrial targeting model that has been developed and discusses the important role played by interindustry linkages in the model. It presents a brief discussion of the industrial targeting model and a description of the econometric analysis embodied in the targeting model, and discusses how interindustry considerations shaped the analysis. The chapter explores the construction and empirical implementation of the variables used to investigate the role of interindustry linkages in rural industrial location and provides the empirical findings associated with these variables. In addition to identifying the attributes, the Northeast Industrial Targeting and Economic Development Database system contains information on how a community compares to all other communities on a given attribute. The negative signs on the input variables are difficult to rationalize in terms of economic theory. The chapter focuses on a study designed to test the hypothesis that interindustry linkages are important determinants of the location of manufacturing plants.
