The Promotion Of Commodity Based Development Essay

1213 Words Aug 18th, 2016 5 Pages
The traditional approach to development of the predominantly rural and small town communities surrounding public lands has been the promotion of commodity-based development rooted in economic base theory (Harris et al., 2003). According to this model, external demand for commercially valuable commodities produced locally drives economic growth. In the nonmetropolitan, historically, the export-based economies have been based on extractive and manufacturing industries (Rudzitis and Johnson, 2000). The base industry attracts other firms that provide services to the industry and its employees, contributing to economic development.
The forest products industry has been an important economic sector in the U.S. Lake States including Michigan, Minnesota, and Wisconsin. Also, it has been considered the economic base for many rural communities around the northern parts of the region. As of 2005, in Wisconsin, approximately 96,000 individuals are employed in primary forest manufacturing making it the largest component of Wisconsin’s manufacturing workforce. An additional 150,000 indirect jobs are created by Wisconsin’s forest products industry (Mace et al, 2004). In Michigan, the industry is the fourth largest sector employing nearly 69,000 individuals with an annual payroll of $2.9 billion (Berghorn, 2005). An additional 150,000 jobs are created from indirect and induced impacts (USDA Forest Service, 2008). And in Minnesota, the forest products industry employs some 40,000…

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