How is manufacturing in rural areas different from urban industries?
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The life in urban areas is fast and complicated, whereas rural life is simple and relaxed. ☆ The Urban settlement includes cities and towns. On the other hand, the rural settlement includes villages and hamlets. ☆ There is greater isolation from nature in urban areas, due to the existence of the built environment.
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From a shift-share analysis on French data, we examine whether the differential of changes in industrial employment between urban cores, (peri)urban fringes and rural areas can be due to differences in their sectoral composition rather than to space-specific factors affecting all sectors indifferently. A estimable stochastic formulation of shift-share analysis with three composition factors (sectoral, regional and urban centre size effects) and one geographical factor (urban-rural gradient) allows us to show the predominance of the sectoral composition and of the urban-rural gradient among the determinants of local employment growth and the weak role of regional characteristics. We also find that the increase in the share of industrial employment in rural areas is essentially due to advantages specific to low-dens ity territories. These 'rural' advantages are strong enough to offset the unfavourable sectoral composition in such areas that attract firms belonging rather to declining sectors. Conversely, urban centres, and especially the largest ones, combine a positive composition effect (i.e. preferential urban location of the more dynamic sectors at national level) with a negative geographical effect (i.e. a tendency for urban industrial employment to fall). The periurban fringes provide attracting characteristics for location of any industrial sector without the sectoral structure plays a significant role either positively or negatively.