Showing papers in "Growth and Change in 2002"
TL;DR: In this paper, the authors focus on variations in success across three ethnic groups in the Amsterdam area and identify empirically the driving forces for business success, such as education or the role of informal networks.
Abstract: Ethnic entrepreneurship has become a popular concept in a modern multi–cultural society. This paper seeks to offer an overview of the potential of ethnic entrepreneurship for solving inter alia the structural unemployment problems of ethnic groups in cities. There is a general lack of empirical evidence on this issue in the current literature. The present paper aims to fill this gap by addressing in particular the critical success conditions for ethnic entrepreneurs. The focus of the research is on variations in success across three ethnic groups in the Amsterdam area. By means of structured personal interviews with many ethnic entrepreneurs, a systematic qualitative data base was created. The paper sets out to identify empirically the driving forces for business success, such as education or the role of informal networks. The explanatory framework deployed for the identification of these qualitative success factors for distinct ethnic groups is based on a particular, recently developed artificial intelligence method, viz. rough set analysis. This multidimensional classification approach appears to be able to identify various important factors for the motivation and performance of ethnic enterprises. Two major findings emerge from this investigation: (i) performance conditions vary across ethnic groups, and (ii) informal networks are crucial for business success.
225 citations
TL;DR: This paper examined the relationship between governmental fragmentation and several measurable outcomes of urban development: density, urbanized land area, property value, and public expenditures on infrastructure, and found that fragmentation is associated with lower densities and higher property values, but has no direct effect on public service expenditures; less fragmented metropolitan areas occupy greater amounts of land due to the extensive annexation needed to bring new development under the control of a central municipality.
Abstract: Recent years have witnessed widespread expansion of state and regional planning programs in the United States. A major purpose of these efforts is to reduce urban sprawl—low density, discontinuous, suburban–style development, often characterized as the result of rapid, unplanned, and/or uncoordinated growth— by promoting jurisdictional cooperation and regulatory consistency across metropolitan areas. This paper evaluates the efficacy of this approach by examining the relationship between governmental fragmentation and several measurable outcomes of urban development: density, urbanized land area, property value, and public expenditures on infrastructure. The four dimensions are modeled in a simultaneous equations framework, providing substantive evidence on how fragmentation and other exogenous factors affect metropolitan growth patterns. Fragmentation is associated with lower densities and higher property values, but has no direct effect on public service expenditures; less fragmented metropolitan areas occupy greater amounts of land due to the extensive annexation needed to bring new development under the control of a central municipality. The findings of the analysis lend support to state and regional planning efforts aimed at increasing cooperation among local governments, but also suggest that further research is needed in order to evaluate whether or not they produce their intended effects.
219 citations
TL;DR: In this article, the authors focus on two main features of industrial districts that have largely contributed to their economic success in the past, that is, their network organization and the collective learning process.
Abstract: The industrial rise of the Third Italy has been characterized by the growth of dynamic networks of flexible small and medium–sized enterprises (SMEs) that are spatially concentrated in specialized industrial districts. This network type of coordination has been associated with horizontal, trust–based relations rather than vertical relations of power and dependency between local organizations. This would lower transaction costs (essential for local systems with an extreme division of labor), facilitate the transmission and exchange of (tacit) knowledge (and thus, learning and innovation), encourage cooperation mechanisms (such as the establishment of research centers), and stimulate political–institutional performance (e.g. through regulation of potential social conflicts).
From an evolutionary perspective, the focus is on the dynamics of industrial districts drawing from current experiences in Italy. In this respect, this paper concentrates on two main features of industrial districts that have largely contributed to their economic success in the past, that is, their network organization and the collective learning process. The evolution of industrial districts is described in terms of organizational adjustments to structural change. The way in which the size distribution of firms has changed is discussed (in particular the role of large companies), how the (power) relationships between local organizations have evolved, what are the current sources and mechanisms of learning, and to what extent institutional lock–in has set in. Finally, a number of trajectories districts may go through in the near future are presented.
138 citations
TL;DR: In this article, the authors analyzed the effect of self-employed persons' education on the success of their firms during the economic downturn and upturn of the 1990's and found that the highly educated faced a higher outside demand for their labor than did the less educated during economic upturn.
Abstract: This paper analyzes the effect of self–employed persons’ education on the success of their firms during the economic downturn and upturn of the 1990's. It is found that the business cycle affects the relative closure rates of firms run by self–employed with any level of education. Exit probability is lower for the highly educated during bust, but higher in boom. This is accounted for by two facts. First, running a small firm is argued to be a less attractive choice to wage work, particularly for the highly educated, due to lower earning prospects, less stable stream of earnings, and the cultural tradition of working in large corporations. Second, the highly educated faced a higher outside demand for their labor than did the less educated during economic upturn. Finally, it was found that regardless of the state of aggregate economy, firms run by the highly educated have higher growth probabilities than those run by less educated persons.
133 citations
TL;DR: In this paper, the authors explored the impact of the opening of the economy on regional disparities in Mexico using σ and β-convergence analyses and found that whereas the final stages of the import substitution period were dominated by convergence trends, trade liberalization (GATT) and economic integration (NAFTA) have led to divergence.
Abstract: After a long period of industrialization based on import substitution (ISI), Mexico started to open up its economy by accessing the General Agreement on Tariffs and Trade (GATT) in 1986. The export-promotion strategy was transformed into one of regional integration with the signing of the North American Free Trade Agreement (NAFTA) in 1994. The paper explores the impact of the opening of the economy on regional disparities in Mexico using σ and β-convergence analyses. Four different samples have been employed to control for possible data bias linked to the inclusion of oil-producing and maquiladora-based states. The results show that whereas the final stages of the ISI period were dominated by convergence trends, trade liberalization (GATT) and economic integration (NAFTA) have led to divergence. In particular, the NAFTA period is related to divergence regardless of the type of analysis chosen and the sample used.
128 citations
TL;DR: This paper analyzed the evolution of China's regional inequalities during the reform period of 1978-1998 based on three geographical scales, both output and livelihood indicators of economic well-being and three measures of inequality.
Abstract: This study analyzes the evolution of China’s regional inequalities during the reform period of 1978–1998 based on three geographical scales, both output and livelihood indicators of economic well-being and three measures of inequality. The results indicate that interprovincial and regional inequalities declined between 1978 and 1990, but have widened steadily since 1990. Urban-rural disparity diminished before 1984, then experienced a decade-long surge afterwards to peak in 1994 at a much higher level and since 1994, it has been declining again. The levels of regional inequalities in China appear to be sensitive to changes in government development strategies and regional policies. Differential growth of the provincial economies shaped by the coast-oriented and urban-biased development strategies as well as selective open-door policy implemented by the Chinese government after the reform is the key to understanding the wax and wane in China’s regional inequalities. This paper discusses the factors that account for the changing regional inequalities in post-reform China and argues that government policies are likely to continue to influence the future trajectories of inequality change.
99 citations
TL;DR: In this article, the authors examined the evolution of patent activities across U.S. states from 1963 to 1997 and found that patent growth is positively correlated with industry R&D and a variable capturing labor skill and infrastructure quality.
Abstract: This paper examines the evolution of patent activities across U.S. states from 1963 to 1997. Several patterns are uncovered. First, there is invention catch-up by some lagging states. Second, the evidence is consistent with knowledge diffusion. Third, leading states unable to reinvent themselves lose their leads. Fourth, catch-up can be across a diverse field of activities or focused on select activities. State patent growth is positively correlated to industry R&D and a variable capturing labor skill and infrastructure quality. These provide rationale for state policy makers to increase support to programs that enhance labor skill (e.g., education) and infrastructure quality.
57 citations
TL;DR: In this article, a conceptual framework is presented to explore the role of social networks in environmental management in polluted urban environments and the results suggest that increasing the number of social interactions that residents of a community experience is associated with increased community participation as, apparently, is increasing knowledge about what happens to waste or waste water after it leaves the community.
Abstract: This paper considers the case of Bangkok where, as in many Asian cities, the expansion of urban areas has outpaced the ability of public entities to manage and provide basic services. One potential way to improve the capacity of neighborhoods to assist in provision or improvement in environmental services is to enhance the positive contributions provided by local social networks and social capital. A conceptual framework is presented to explore the role of social networks in environmental management in polluted urban environments. This is followed by a brief description of the methodology and survey instrument used to collect information from a sample of community households in Bangkok and an analysis of the results from this survey regarding environmental practices, community action, and social networks. Some of the results suggest that increasing the number of social interactions that residents of a community experience is associated with increased community participation as, apparently, is increasing knowledge about what happens to waste or waste water after it leaves the community. Local public education efforts that focus on useful knowledge about environmental impacts may well be an effective way to encourage community participation.
49 citations
TL;DR: In this paper, the authors provide a framework for categorizing state technology programs and use detailed case studies to examine how these programs augment firms' capabilities, concluding that firms made extensive use of state programs that provide access to university intellectual property and research facilities.
Abstract: State governments offer a variety of programs to assist technology intensive entrepreneurial firms yet there is a limited understanding of how firms use these programs. This paper provides a framework for categorizing state technology programs and uses detailed case studies to examine how these programs augment firms’ capabilities. It is concluded that firms made extensive use of state programs that provide access to university intellectual property and research facilities. In addition, firms participated in programs that provided incentives for faculty to conduct joint research with industry. Finally, state venture capital programs, though small relative to federal R&D grants or venture capital, appear to nurture firms’ development.
45 citations
TL;DR: In this article, a regression analysis was carried out for 1982 and 1992 to understand the spatial distribution and suburbanization of business and professional services in Atlanta, finding that flexible female workers, corporate headquarters, well-educated professionals, and highway access were important location determinants.
Abstract: Despite an increase of 200,000 jobs in business and professional services in the Atlanta metropolitan area between 1982 and 1997, the central city saw employment as a percentage of these services drop by approximately 20 percent. Most growth occurred in the northern suburbs, resulting in a dispersed distribution of business and professional services in Atlanta. To understand the spatial distribution and suburbanization of business and professional services in Atlanta, regression analysis was carried out for 1982 and 1992. Flexible female workers, corporate headquarters, well –educated professionals, and highway access turned out to be important location determinants, with the latter two being increasingly responsible for the suburbanization of business and professional services.
43 citations
TL;DR: This paper explored the degree to which respondents think management of agricultural lands is a public versus a private matter and found that well-established residents and those with economic reasons for living in the county support private management strategies.
Abstract: Rocky Mountain states have experienced unprecedented growth as agricultural land is converted to residences. Preservation efforts meet with protest from private landholders claiming public efforts undermine private property rights. This paper explores the degree to which respondents think management of agricultural lands is a public versus a private matter. Data are from a Sublette County, Wyoming, mail survey. Results are relevant to many western counties having public lands and high growth rates. They suggest that landowners, wage earners, college graduates, and those who value the county’s rural community lifestyle support public management strategies. Well-established residents and those with economic reasons for living in the county support private management strategies.
TL;DR: In this paper, the authors examined the relationship between moonlighting and structural differences in regional labor markets such as wages and employment growth and found that moonlighting acts as a short-term shock absorber to cyclical changes.
Abstract: Despite the prevalence of multiple jobholding, there is relatively little research into its causes. Existing research has tested the predictions of standard labor models with micro data. Yet, there has been virtually no research into the relationship between moonlighting and structural differences in regional labor markets such as wages and employment growth. In this manner, this study examines the large differences in multiple jobholding rates across U.S. states. The findings indicate that multiple jobholding acts as a short-term shock absorber to cyclical changes. However, in the long-term, these effects dissipate, indicating that moonlighting plays a similar role as do changes in unemployment and labor-force participation to regional labor market shocks. Conversely, multiple jobholding rates are inversely related to average weekly earnings. Thus, job growth accompanied by real wage (and productivity) growth may result in a decline in multiple jobholding, further exacerbating potential labor shortages. Other key factors found to influence multiple jobholding include occupational structure and education.
TL;DR: In this article, the authors present an analysis of a public assistance program for small-scale entrepreneurship in peripheral areas and empirically establish that location matters in determining the risk profile of the firm, and locationally targeted programs can reduce the information asymmetries that make peripheral firms unattractive to lenders.
Abstract: This paper presents an analysis of a public assistance program for small-scale entrepreneurship in peripheral areas. Public assistance compensates for market inefficiencies where the decision rules of financial institutions discriminate against otherwise viable small firms in capital markets. Lending institutions perceive high risk in providing debt capital when little information is present. Using empirical data from Israel, the determinants of this risk are estimated and the role of location in creating this information asymmetry is stressed. These results empirically establish that (1) location matters in determining the risk profile of the firm, (2) locationally targeted programs can reduce the information asymmetries that make peripheral firms unattractive to lenders, and (3) these programs can also generate positive welfare effects. Finally, there is speculation on the potential role of ICT (information and communications technology) in increasing the visibility of small firms in remote locations and creating a more symmetrical flow of information.
TL;DR: The authors examined the characteristics, competitive problems, and markets of firms located in these two regions and found that significant core-periphery differences exist with regard to firm-specific difficulties and markets served.
Abstract: The U.S. machine tool (MT) sector has undergone substantial restructuring over the past three decades. Despite signs of a commercial rebound in recent years, however, a number of critical issues remain for this industry. Not all firms share these concerns, in that differences exist between producers located in the core manufacturing belt and those located elsewhere. This paper examines the characteristics, competitive problems, and markets of firms located in these two regions. Survey data from a sample of 104 machine tool companies reveal that significant core–periphery differences exist with regard to firm–specific difficulties and markets served. The data also show that firms in the periphery have been growing significantly faster than firms in the core. The paper concludes with a discussion of the likely reasons for regional variability in the characteristics of firms in this industry. Directions for future research are also suggested, notably with regard to the interplay between national regulatory conditions and the competitive performance of MT firms.
TL;DR: This article examined changes in four sectors of livestock production, pork, dairy, fed cattle, and beef cows, from 1978 to 1997 by county metropolitan character and identified a divergence in the amount and scale of pork production in metro versus nonmetro regions from 1987 to 1997, coinciding with a period of substantial industrialization in that sector.
Abstract: This research examines changes in four sectors of livestock production, pork, dairy, fed cattle, and beef cows, from 1978 to 1997 by county metropolitan character. Relative changes in the amount of production and the number of producers in a county as well as changes in the average scale of production are examined. The purpose is to identify whether structural differences have emerged between metropolitan and nonmetropolitan Corn Belt counties as a result of industrialization in livestock production. The analysis identifies a divergence in the amount and scale of pork production in metro versus nonmetro regions from 1987 to 1997, coinciding with a period of substantial industrialization in that sector. Little divergence is identified in the scale of dairy, fed cattle, and beef cows operations during the same time period. The findings have implications for farmland preservation and agricultural viability in exurban regions of the Corn Belt.
TL;DR: In this paper, an evolutionary reading of rural development referred to cases of rapid industrial growth is proposed, where a strong concentration process has involved the main urban centers and the successful industrial districts.
Abstract: This paper proposes an evolutionary reading of rural development referred to cases of rapid industrial growth, where a strong concentration process has involved the main urban centers and the successful industrial districts. This territorial development pattern has gradually extinguished rural society and its institutional basis, creating a clear separation between new central and peripheral areas. The consequent effects on local economy and social dynamics reveal the long-term risks raised in terms of development sustainability. An empirical study of two Italian provinces is also carried out to show how this framework can be helpful in interpreting real historical patterns.
TL;DR: The authors explored potential differences with respect to settlement and endowed human capital between immigrants and refugees and identified the major sources of refugees within the 1990 Public Use Microdata Sample (PUMS) data set.
Abstract: Discussions of immigration, settlement and adjustment within the U.S. do not typically refer to immigrant status (i.e., refugee versus family preference), and instead refer to the foreign–born population as an aggregate. Distinguishing between refugees and other immigrant arrivals likely means differences with respect to their geographic distribution and embodied human capital owing to differences associated with the reasons for immigration (forced versus voluntary), period of arrival, and immigration policy. The lack of differentiation by group within the existing literature is typically due to a shortfall of detailed information relating to admission status within publicly released data files. Yet concrete knowledge of differences by admission category is important in understanding overall patterns of settlement and adjustment within the foreign–born population. This paper therefore explores potential differences with respect to settlement and endowed human capital between immigrants and refugees. Identification of the major sources of refugees within Immigration and Naturalization Service data files allows the refugee population to be identified within the 1990 Public Use Microdata Sample (PUMS), therefore increasing the range of variables and measures associated with the refugee population available to researchers, and points to the diversity of the refugee population.
TL;DR: In this article, the authors present a non-parametric approach to evaluate economic development planning programs with a small number of participants, incorporating a control group for comparison purposes, using a case study of a publicly-funded small business incubator program.
Abstract: Many researchers and practitioners agree that evaluation of economic development planning programs is important, although the perspectives on the approaches, methods, and use of results vary widely. Confounding the issue are cases in which development programs have a small number of participants and typical measures such as parametric statistics are not valid. The alternate evaluation technique presented here uses a non-parametric approach, incorporating a control group for comparison purposes. The paper begins with a review of evaluation issues for economic development planning programs, followed by an illustration of the approach suitable for programs with small numbers of participants. It utilizes a case study of a publicly-funded small business incubator program, the Advanced Technology Development Center, located in Atlanta, Georgia. By explaining how the analysis is constructed and the results interpreted, the paper illustrates a potentially useful methodological approach to evaluating community economic development programs.
TL;DR: In this article, the authors developed a methodology that avoids both of these sources of error by explicitly incorporating air travel demand into the analysis of economic impact of an airport on travelers' expenditures.
Abstract: Economic impact studies overestimate the direct impact of an airport on travelers' expenditures This occurs for two reasons First, impact studies assume that the number of visitors traveling to the local area via the airport would fall to zero in the absence of the airport Second, impact studies implicitly assume that local residents would continue to travel outside the local area in the same numbers as when the local airport is available In other words, it is assumed that the demand for travel into the local area by visitors is perfectly elastic with respect to the time and money costs of travel, while the demand for travel by local residents is perfectly inelastic with respect to these variables This paper develops a methodology that avoids both of these sources of error by explicitly incorporating air travel demand into the analysis The methodology is applied to Tampa International Airport for the year 1996 It is shown that using the standard methodology would have resulted in an estimate of direct impacts sixteen times the size of the estimate made by using the methodology of this paper