Growth Promotion Activities in Rural Areas: Do They Make a Difference?1

Abstract Can leaders in small towns and surrounding areas actually influence local economic and demographic growth? Competing views but few studies of this issue characterize recent debates about the effects of “growth machines” in local areas. This paper uses alternative indicators of growth during the 1980s for a sample of local areas in rural Pennsylvania to examine the effects of development efforts, controlling ecological and structural characteristics. The analysis considers local participation in state programs and maintenance of a favorable business climate as well as measures of local growth promotion for business and industry, recreation and tourism, development of forest products, and services development. Hierarchical regressions, taking account of the statistically dominant effects of ecological and structural variables, show that local efforts can influence local growth.