ABSTRACT

This chapter explores empirical literature on the impact of major economic development on community income distribution. It covers a number of studies dealing with capital control, profit taking, wages, other income, property taxes, and living costs with specific emphasis on their distribution within the community. The chapter utilizes community as the immediate trade area of a development project. Major economic development events are often viewed as a means to improve the personal incomes of residents of the affected community. These events might include resource exploitation, defense installations, manufacturing plants, and other activities which rapidly increase a community's economic base. The chapter outlines a general framework for looking at the question of the distributional effect of major economic developments. It explores presentation of the results extracted from previous research, and presents conclusions respecting the adequacy of current knowledge about the distributional effects of development.