THE IMPACT OF AUTOMOBILE PRODUCTION ON THE GROWTH OF NON-FARM PROPRIETOR DENSITIES IN ALABAMA’S COUNTIES

This paper studies the impact of the auto industry on the growth of non-farm proprietor densities in Alabamai¯s counties. Results show that automobile production in Alabama significantly increases non-farm proprietor in all counties. The impact of automobile production on the growth of non-farm proprietor densities in distressed black belt counties is greater than other counties. Then, appropriate policies to lure industrial development become very important to increase the self employment opportunity. There is significant spatial lag effects and spatial error effects between non-farm proprietor densities and per capita income.