ABSTRACT
This chapter explores the literature regarding the actual changes in the economic structure and the actual changes in employment opportunities in the community as a result of an economic development event. It examines only smaller communities that were originally agricultural in nature, or relied heavily upon a single nonfarm industry, where a minimum of 1,000 new jobs were created or there was at least a 50% change in the community's employment base. A general summary of the empirical literature from the Canada, Scandinavia, and Scotland indicates that the studies are of specific events, focus upon points in time for measurements rather than analysis of trends and do not disaggregate results for specific segments of population or economy. The economic development event affects linked businesses in two ways: through purchases from existing businesses, and through the appearance of new firms. A major economic development event and the associated secondary business activities can alter community capital flows and requirements in various ways.
