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Economic Research Institute Study paper


Utah State University

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Many factors contribute to the expansion of existing industries and/or the development of new ones. First, a shift in population densities can produce a shift in production areas given that transportation is not costless. Second, a significant change in local, regional, or state business climate can induce certain businesses to change locations. Third, a discovery or sudden availability of certain types of resources can also bring about such a change. Fourth, changes in market structure or industrial organization often result in production shifts. Fifth, enterprising producers often serve as catylists to encourage the development of new enterprises in a particular location. Sixth, changes in production/processing technology can induce shifts in production centers.