Minnesota’s C.L.I.O. Project

Pilot Study: Estimating Rural-Urban

Interdependencies

Minnesota Rural Partners, Inc. Jane Leonard

Kate Searls

June 1, 2011

katesearls@msn.com

C.L.I.O. is Minnesota’s

Innovative approach for: Estimating rural-urban economic interdependencies and Identifying development targets for maximum rural-urban job gains.

“C.L.I.O” stands for:* Regional CLuster Analysis* Input-Output Analysis

katesearls@msn.com

Regional Cluster Analysis identifies Business Density or Concentrations for particular industry sectors Harvard’s Cluster Mapping

Project

Input Output Analysis estimates trading connections, tracking the flow of goods and services between regional economies. IMPLAN

katesearls@msn.com

Regional Cluster Studies Identify Areas of Industry Concentrations

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Minnesota’s Computer & Electronic Product Manufacturing Clusters

IO Tracks Ripple Effects from Rural to Urban Markets

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Local Rural Economy

Connected Urban Economy

Target Cluster Output Increase

Additional Business-to-Business Spending: Supply Chain

Additional Business – to-Consumer Spending – Consumer

Urban & Rural Minnesota

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Pilot Study Findings - Baseline

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Manufacturing: Ripple Effects Due to $1B Increase Rural Output

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Agribusiness: Ripple Effects Due to $1B Increase RuralOutput

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Implications The reverse is also true! A $1 B decrease

in manufacturing output in rural Minnesota results in 1,043 jobs lost and a loss of $208 M revenue among Twin Cities area businesses.

Economic dependence of Urban MN on Rural MN is real, measurable and significant

Wealth Creation takes place through trading networks that span urban and rural markets.

Encourage policy and investments approach that accurately values how prosperous cities depend on robust rural areas and vice versa.

katesearls@msn.com

Project Partners

Minnesota Rural Partners, Inc.

U.S.D.A Rural Development

Blandin Foundation

University of Minnesota Humphrey School – State & Local Policy

Program Ag School - Applied Economics Extension- Community Economics

State of Minnesota, Department of Employment & Economic Development

katesearls@msn.com