Mark S. White

Document Type

Thesis - Open Access

Award Date


Degree Name

Master of Science (MS)



First Advisor

William E. Kemps


Several rural communities, through the efforts of industrial development corporations or private individuals, are actively engaged in recruiting new industry, with the intent being diversification of their local economies. The goals of these efforts are the reversal of out-migration trends, new employment opportunities, increased local income, and a widened tax base. Community leaders often equate industrialization of their community with increased standards of living for the local residents. Different industries may have quite different economic and public finance impacts upon the rural communities in which they locate, depending upon the characteristics of both the industry and the community. As a result of rural industrialization certain sectors of the community may benefit at the expense of increased costs in other sectors. It is important that those charged with the responsibility for attracting new industry be able to critically evaluate the potential impacts that an industry might have on their community. To do so, specifically, three sectors of the local economy must be examined: the private sector, the municipal sector, an:l the school district sector. The general objective of this study is to estimate the impact of increased industrial activity on the community of Brookings, South Dakota. The study has four major objectives. 1. Employ a mathematical model to simulate the economic and public finance impacts of five hypothetical firms that might feasibly locate in Brookings, South Dakota. 2. On the basis of the simulations, estimate the net industrialization benefits in the private, municipal, and school district sectors of the community. 3. Determine the potential limits of location incentives that could realistically be offered to potential firms by the community. The property tax burdens associated with the simulation will also be estimated. 4. Test the sensitivity of sectoral (private, municipal, and school district) impacts to alternative assumptions about key variables in the model.

Library of Congress Subject Headings

Industrial promotion -- South Dakota -- Brookings
Brookings (S.D.) -- Economic conditions
Brookings (S.D.) -- Industries -- Mathematical models



Number of Pages



South Dakota State University