This is an open question, since I haven't been able to find anything definitive (or even a correlation). The local SEO consensus is that local links are more effective at driving local rankings than non-local links. Does anybody know if there's been a study done at some point that backs this up...
To be fair, it ultimately boils down to the business and the resources they have available. If they're doing well enough to hire someone full-time to manage SEO and content, then I could see a blog being useful for driving links and increasing the rankings of the site as a whole.
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