Showing papers in "Economic Development Quarterly in 2014"
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TL;DR: The Rise of the Creative Class has generated widespread conversation and debate and has had a considerable impact on economic development policy and practice as mentioned in this paper, and this essay briefly recaps the key tenants of the creative class theory of economic development.
Abstract: The Rise of the Creative Class, which was originally published in 2002, has generated widespread conversation and debate and has had a considerable impact on economic development policy and practice. This essay briefly recaps the key tenants of the creative class theory of economic development, discusses the key issues in the debate over it, and assesses its impacts on economic development policy.
214 citations
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96 citations
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TL;DR: In this article, values-based supply chains (VBSCs) have emerged as a structure to enhance the viability of mid-scale farms while preserving jobs and rural economies, and they involve partnerships between producers, pr...
Abstract: Values-based supply chains (VBSCs) have emerged as a structure to enhance the viability of mid-scale farms while preserving jobs and rural economies. They involve partnerships between producers, pr...
50 citations
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TL;DR: This article examined county-level linkages between community-focused agriculture and growth in total agricultural sales and economic growth more broadly using Census of Agriculture data, using real personal income per capita change between 2002 and 2007.
Abstract: Community-focused agriculture has been heralded as a development strategy to induce local economic growth. This study examines county-level linkages between community-focused agriculture and growth in total agricultural sales and economic growth more broadly. Using Census of Agriculture data, regional growth models are estimated on real personal income per capita change between 2002 and 2007. We find no association between community-focused agriculture and growth in total agricultural sales at the national level, but do in some regions of the United States. A $1 increase in farm sales led to an annualized increase of $0.04 in county personal income. With few exceptions, community-focused agriculture did not make significant contributions to economic growth in the time period analyzed.
49 citations
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TL;DR: In this paper, the differences in these policies across states affect policy effectiveness and child well-being, as well as the dimensions and characteristics that vary between states, and concludes with implications for research in the experimenta...
Abstract: Research from numerous disciplines provides support for the critical importance of early childhood development in economic development. The long-term individual and societal benefits of investing resources during early childhood make it an unrivaled opportunity for policy. Over the past 30 years, states have gained increasing control over the major policies for families with young children through the devolution of federal programs to states. States have also expanded their innovation and adoption of early childhood education programs during this time, such as prekindergarten. Policy makers need to understand how the differences in these policies across states affect policy effectiveness and child well-being, yet there is limited research, especially during early childhood. This article outlines the federally-devolved and state-developed policies for families with young children and the dimensions and characteristics that vary between states, and concludes with implications for research in the experimenta...
46 citations
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TL;DR: The sustained surge in self-employment since 2000 has largely gone unnoticed by policy makers and economic developers as mentioned in this paper, and the authors document this surge and identify variables associated with ex ect.
Abstract: The sustained surge in self-employment since 2000 has largely gone unnoticed by policy makers and economic developers. Here the authors document this surge and identify variables associated with ex...
43 citations
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TL;DR: In this article, the authors used Panel Study of Income Dynamics (PSID) data on family wealth in 1999 through 2009 to examine whether business ownership reduces the wealth disparity between Black and White households.
Abstract: Does business ownership reduce the wealth disparity between Black and White households? The author uses Panel Study of Income Dynamics (PSID) data on family wealth in 1999 through 2009 to examine t...
43 citations
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TL;DR: In this article, the authors describe how industrial-zoned land shapes the dynamics of business relocation and expansion in four San Francisco Bay Area cities and use multivariate analysis to examine the role of zoning in firm expansion, controlling for firm characteristics, industry, building characteristics and location.
Abstract: Policy makers seeking to rezone urban industrial land often cite the need to attract or retain non-industrial or high-tech businesses that would otherwise locate in outlying areas or other regions. Yet industrial land may still play an important role in the 21st-century economy. This article describes how industrially-zoned land shapes the dynamics of business relocation and expansion in four San Francisco Bay Area cities. The analysis combines two unique data sets (the National Establishment Time Series and historic zoning maps) and uses multivariate analysis to examine the role of zoning in firm expansion, controlling for firm characteristics, industry, building characteristics, and location. Firm size plays the most important role, but the availability of industrially-zoned land and large buildings also helps firms to expand. The article concludes by outlining land use and economic development strategies that help cities target firms creating jobs on industrial land.
38 citations
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TL;DR: By 2010, all but 12 U.S. states had adopted some form of research and development tax credits as mentioned in this paper and the forces driving the rapid rise and spread of this policy remain unclear.
Abstract: By 2010, all but 12 U.S. states had adopted some form of research and development tax credits. The forces driving the rapid rise and spread of this policy remain unclear. This event history analysi...
27 citations
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TL;DR: State initiatives that build innovation capacity by supporting local academic research, attracting eminent scholars, and building research excellence have become prominent among the 50 states over the last decade as discussed by the authors...
Abstract: State initiatives that build innovation capacity by supporting local academic research, attracting eminent scholars, and building research excellence have become prominent among the 50 states over ...
25 citations
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TL;DR: In this paper, a case study of the strategic use of industrial recruitment to build out North Carolina's biopharmaceutical manufacturing industry is presented, which helps shed light on how recruitment practices can be designed and improved to support continued manufacturing job growth, but in ways that also limit the recruitment of potentially footloose establishments.
Abstract: Industrial recruitment continues to play a significant role in the development of manufacturing industries in the U.S. South. Still, there are signs of shifting practice that not only emphasize a different set of regional advantages from earlier decades but equally help bolster those same advantages to anchor outside firms to the region. This article presents a case study of the strategic use of industrial recruitment to build out North Carolina’s biopharmaceutical manufacturing industry. This case study helps shed light on how recruitment practices can be designed and improved to support continued manufacturing job growth, but in ways that also limit the recruitment of potentially footloose establishments. As such, it presents an alternative perspective to recent studies of industrial recruitment that focus narrowly on efforts to limit or curb locational incentives for industry attraction.
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TL;DR: This paper identified two conceptually distinct approaches, often termed industrial recruitment and entrepreneurial policies, and debatably different approaches, for state economic development policy in the United States have been identified.
Abstract: Observers of state economic development policy in the United States have identified two conceptually distinct approaches, often termed industrial recruitment and entrepreneurial policies, and debat...
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TL;DR: In this article, a survey of more than 200 Latino immigrant entrepreneurs from 39 communities in 21 counties in western Arkansas was conducted to identify barriers to business formation and continuation within the target population.
Abstract: Results are reported from a Latino immigrant entrepreneur needs assessment survey. The research project was conducted to identify barriers to business formation and continuation within the target population. A total of 171 surveys representing more than 200 businesses from 39 communities in 21 counties in western Arkansas were collected. Nearly 42% of respondents cited start-up capital as their biggest barrier with another 15% naming it as the second biggest barrier. Understanding government regulations and tax information rated as the second biggest barrier that Latinos encountered. This barrier is more pronounced in rural areas than in urban areas. Other top concerns include advertising, location, and obtaining licenses and permits. A closer examination of barriers finds nuanced differences between rural and urban entrepreneurs. Outreach programs and materials developed in response to research findings are presented.
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TL;DR: The authors created a typology presenting various dimensions of social capital and tested the effects of multidimensional social capital on different economic development partnerships, finding that different dimensions contribute to creating economic development partnership regardless of local boundaries.
Abstract: Various types of social capital facilitate the creation of intralocal or interlocal economic development partnerships because it reduces the transaction costs that lead to collective action problems. Prior studies have focused on explaining how collective action mechanisms lead to the creation of economic development partnerships. While multidimensional social capital plays a dynamic role in promoting economic development activities within and across communities, the underlying complexity of multidimensional social capital remains unexplored in prior studies. This study creates a typology presenting various dimensions of social capital and tests the effects of multidimensional social capital on different economic development partnerships. Results indicate that different dimensions of social capital contribute to creating economic development partnerships regardless of local boundaries.
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TL;DR: In this paper, the authors focus on the question: are some incentives more effective in particular combinations as they would normally be applied in reality? Based on an assessment of five widely used economic development programs in the state of Michigan, the research concludes that even in combination, many commonly used incentives have no relationship to the economic health of city residents.
Abstract: Although policy evaluations have raised significant concerns about the effectiveness of individual incentives such as tax abatements and special taxing districts, they beg the question of whether, in the right combination, these tools might actually work. This research focuses on this question: Are some incentives more effective in particular combinations as they would normally be applied in reality? Based on an assessment of five widely used economic development programs in the state of Michigan, the research concludes that even in combination, many commonly used incentives have no relationship to the economic health of city residents. Programs that include performance guarantees, particularly related to jobs, appear promising. For many, particularly smaller, cities offering no economic development incentives also appears to be a promising course of action.
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TL;DR: In this article, the authors simulate job and fiscal impacts of the Michigan Economic Growth Authority's tax credit program for job creation, commonly called “MEGA.” Under plausible assumptions about how such credits affect business location decisions, the net costs per job created of the MEGA program are simulated to be of modest size.
Abstract: This article simulates job and fiscal impacts of the Michigan Economic Growth Authority’s tax credit program for job creation, commonly called “MEGA.” Under plausible assumptions about how such credits affect business location decisions, the net costs per job created of the MEGA program are simulated to be of modest size. The job creation impacts of MEGA are simulated to be considerably larger than devoting similar dollar resources to general business tax cuts. The simulation methodology developed here is applicable to incentives in other states.
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Abstract: In this article, the authors argue that better data and research on rural wealth creation are greatly needed and present a conceptual framework to help guide such research. The authors then discuss five observations about rural wealth creation, based on examples drawn from the recent literature on emerging energy industries in rural America. The cases show that the types of data needed to draw conclusions about wealth effects of new development are highly contextual. The framework can help researchers think about the types of data needed to assess policy.
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TL;DR: Technological concentration and innovation have been identified as important forces behind growth, and entrepreneurship has been recognized as an important link between new knowledge and economic growth as discussed by the authors, which is the case in many countries.
Abstract: Technological concentration and innovation have been identified as important forces behind growth, and entrepreneurship has been recognized as an important link between new knowledge and economic g...
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TL;DR: This article examined the relationship between the distribution of firms across size categories and economic growth, extending Loveridge and Nizalov's Michigan results to the United States using county-level data, including growth and control variables.
Abstract: The authors examine the relationship between the distribution of firms across size categories and economic growth, extending Loveridge and Nizalov’s Michigan results to the United States. Using county-level data, including growth and control variables, the authors explore the relationship between the size distribution of firms and 12-year growth patterns for the continental United States and three multistate high-poverty regions. The results of fixed-effect feasible generalized least squares estimation show a connection between employment growth and the distribution of firms across size categories for the continental United States. The results also show a positive link between employment growth and firm size for Lineal America and the Plantation Belt, but no statistically significant relationship for the Borderlands. The results suggest that policies aimed at promoting small business, while important nationally, may differ in impacts across regions and provide an argument for region-level decision making ...
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TL;DR: This paper used a contingent valuation model to evaluate visitors' stated willingness to pay (WTP) for recreation at Colorado Fourteeners: peaks that rise higher than 14,000 feet.
Abstract: This study uses a contingent valuation model to evaluate visitors’ stated willingness to pay (WTP) for recreation at Colorado “Fourteeners”: peaks that rise higher than 14,000 feet. The study also assesses the respondents’ self-reported response uncertainty. One scenario queries respondents about a hypothetical situation in which they would pay an entrance fee where 80% of the funds are used on-site, and the degree of certainty with which they answered the question. Like prior articles from this 6-year project (2006-2012), results indicate a high WTP for recreation on Colorado Fourteeners. Results reveal that 62% of respondents are willing to incur an additional fee of $20 or less to recreate at the study site. Regardless of whether or not the respondent is willing to pay an additional fee for recreation, approximately 90% of respondents report a high level of certainty in their stated answers to both the WTP and the fee questions, which could be connected to the recreators’ sense of place on Fourteeners....
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TL;DR: In this paper, the authors recognize that community-based strategies offer the best opportunity for rural economic development, but, rural communities also need assistance in rural communities in their economic development.
Abstract: Economic development practitioners and theorists recognize that community-based strategies offer the best opportunity for rural economic development. But, rural communities also need assistance in ...
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TL;DR: State incentive granting for the purpose of firm retention or recruitment remains highly controversial and is often portrayed as antithetical to long-range economic development planning as discussed by the authors, which is not the case.
Abstract: State incentive granting for the purpose of firm retention or recruitment remains highly controversial and is often portrayed as antithetical to long-range economic development planning. This artic...
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TL;DR: In this article, the authors considered or controlled for the potential effects of tax increment financing (TIF) effectiveness under extensive tax increment finance controls, and found that no study had considered the potential effect of TIF on economic performance.
Abstract: Research into tax increment financing (TIF) effectiveness has yielded mixed results, often under extensive controls. Until recently, no study had considered or controlled for the potential effects ...
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TL;DR: In this article, the authors compare the economic impact of the main activities in which military bases engage and find that the economic benefits of soldier-based activities are smaller than most economic development alternatives.
Abstract: In 2015, the Pentagon will likely announce a round of military base closures and expansions with the power to remake regional economies throughout the United States. Current estimates of the impact of base realignments implicitly assume that military bases have similar economic impacts. But the military is a diverse institution engaged in thousands of distinct activities, each with their own benefits to local economies. Using detailed soldier, civilian, and contracting data from two army bases, this article compares the economic impact of the main activities in which military bases engage. Because military bases source their inputs from national defense procurement networks, the economic benefits of soldier-based activities are smaller than most economic development alternatives. This finding suggests that regions facing defense contracting cuts are significantly more economically vulnerable than regions facing base closures.
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TL;DR: In this article, the use of local impact fees is examined as a product of governmental supply and community demands in a political market, and a hierarchical general linear model is proposed to capture the impact of political market forces and control variables on the enactment or continuation of impact fees.
Abstract: The use of local impact fees is examined as a product of governmental supply and community demands in a political market. Whereas new regionalism emphasizes the embeddedness of city-level decisions in a regional context, political market theories and the empirical study of local growth decisions treat city decisions as being shaped by local conditions, institutions, and processes. Hierarchical general linear modeling provides a statistical method to examine influences on policy decisions at multiple levels. This article estimates a hierarchical general linear model that captures the impact of political market forces and control variables on the enactment or continuation of impact fees. The likelihood of using impact fees varies across metropolitan areas, and intergovernmental revenue facilitates local innovation, but larger council size is a barrier to application of this policy innovation. The conclusion provides a research approach and agenda for practitioners and scholars to better understand multileve...
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TL;DR: In this article, the role played by higher education institutions (HEIs) in fostering regional economic development has been recognized, and a number of economic development strategies have been developed for HEIs.
Abstract: There has been increasing recognition of the role played by higher education institutions (HEIs) in fostering regional economic development. Concurrently, regional economic development strategies h...
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TL;DR: The U.S. federalist structure intentionally distributes the management of public policies across the various levels of government as discussed by the authors, and the line between appropriate governmental distribution and management is clear.
Abstract: The U.S. federalist structure intentionally distributes the management of public policies across the various levels of government. The federal government places greater attention on issues like defense and monetary policy; state governments have taken the lead on a range of policies that include education and business conduct, whereas local municipalities have directed greater attention to a range of issues that include public works. For some public policies, the appropriate governmental distribution and management is clear. With others, however, the line is not as clearly defined. Economic development policy is among one of these that is of great interest to multiple levels of government. Economic development as a concept is often only loosely defined. This is rather difficult to admit as we oversee this focus issue of Economic Development Quarterly (EDQ), but economic development is simultaneously a theoretical concept—a set of actions and incentives and a professional practice. Often when a term becomes popular it becomes conflated in popular use and the meaning becomes unclear. It was something that the U.S. Economic Development Administration (EDA) felt strongly enough about that we have worked with EDA to put forward a definition, which we would like to offer here:
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TL;DR: The authors of as discussed by the authors argue that poverty is now as much a suburban as a rural or urban issue and that the solution is for these small, fragmented governments and agencies to work together to achieve a scale sufficient both to compete for funding and to operate efficiently.
Abstract: Since the 2007-2009 recession and associated housing crisis, there has been a growing concern over the suburbanization of poverty. Researchers in the Metropolitan Policy Program at the Brookings Institution have generated much of this research through a series of in-house publications. This short book, published by the Brookings Institution Press, synthesizes this research with updates from the most recent American Community Survey along with vignettes drawn from affected suburbs across the United States. The book covers three topics. Chapter 1 places the suburbanization of poverty within the historical context of a concern for urban poverty and traditional perspectives on suburbanization. In so doing, it attempts to argue that poverty is now as much a suburban as a rural or urban issue. This is an important argument for two different audiences. For academic researchers who are concerned with concentrated urban poverty, it asks them both to broaden their empirical focus to include the metropolitan region and to broaden their conceptualization of concentrated poverty to include processes that may result in the suburbanization of poverty. For policy makers, it requires a consideration of the unique issues confronted by the poor in suburban areas and the need to develop new policies that could address these issues. Empirical evidence regarding the suburbanization of poverty is presented in chapters 2 and 3; however, this evidence is flawed for two vitally important reasons. First, the text ignores peer-reviewed research on the suburbanization of poverty in favor of in-house reports produced by the Metropolitan Policy Program. Indeed, this peer-reviewed literature complicates an underlying message of this book, which is that poverty is emerging in newer lower-density suburbs, by noting that the growth of suburban poverty is strongest in older high-density inner-ring suburbs. Second, to the critical eye, the methodology for identifying suburbs is questionable. This book classifies as urban those municipalities that are listed first in the Office of Management and Budget (OMB) names assigned to metropolitan areas and any other municipality listed in the OMB names that have a population of at least 100,000. The remainder of each metropolitan area is then classified as suburban. This is not a mere technical issue because it raises questions concerning the premise of the book. It means that dozens of decidedly urban municipalities, like the old industrial mill town of Waterbury, CT, which has a population of 110,000 and a poverty rate of 21%, are classified as suburbs: To what degree is the reported growth in suburban poverty actually due to an increase in poverty in declining second-tier urban areas that are inappropriately classified as suburbs? The strength of the book is in regard to policy. Chapters 4 through 7 outline how the dispersed nature of the suburban poor presents unique problems in providing services to the poor and the difficulties that social service agencies and small, fragmented suburban municipalities face in gaining philanthropic, federal, and state support. The book emphasizes that the solution is for these small, fragmented governments and agencies to work together to achieve a scale sufficient both to compete for funding and to operate efficiently. A host of examples are presented that not only provide a blueprint for existing service providers but also supports the book’s agenda of a Metropolitan Opportunity Challenge that would “redeploy existing federal place-based resources” to “coordinate federal efforts across agencies” that would target applications that would “spark state-level reforms” and “support tailored metrolevel strategies” not too different than the existing Race to the Top federal education program. In all, the book is well-written and offers a valuable discussion of current antipoverty programs, the problems confronted by the poor in suburban areas, the difficulty in providing services to the suburban poor, and detailed policy solutions. However, the book’s failure to fully engage the existing academic literature and its fundamental empirical limitations raises questions as to the book’s basic premise.