Economic Development Quarterly recent issues

Regional Benchmarking in a Global Context: Knowledge, Competitiveness, and Economic Development

Huggins, R., Izushi, H. — Fri, 02 Oct 2009 12:10:05 PDT

Benchmarking exercises have become increasingly popular within the sphere of regional policy making. However, most exercises are restricted to comparing regions within a particular continental bloc or nation.This article introduces the World Knowledge Competitiveness Index (WKCI), which is one of the very few benchmarking exercises established to compare regions across continents.The article discusses the formulation of the WKCI and analyzes the results of the most recent editions.The results suggest that there are significant variations in the knowledge-based regional economic development models at work across the globe. Further analysis also indicates that Silicon Valley, as the highest ranked WKCI region, holds a unique economic position among the globe’s leading regions. However, significant changes in the sources of regional competitiveness are evolving as a result of the emergence of new regional hot spots in Asia. It is concluded that benchmarking is imperative to the learning process of regional policy making.

Creative and Knowledge Industries: An Occupational Distribution Approach

Mellander, C. — Fri, 02 Oct 2009 12:10:05 PDT

This article deals with the discussion around so-called creative industries. Up until now, most definitions have been based on the final product rather than the actual processes within the firms.This work is an attempt to increase the knowledge about what is going on within industries. We use a micro data set, including all private firms and all individuals employed by those firms, to identify the exact occupational distribution within Swedish industries. Furthermore, a debate has questioned whether creative individuals are separated from the highly educated. In this work, therefore, education level is separated from occupational task.

The Impact of New Employers From the Outside, the Growth of Local Capitalism, and New Amenities on the Social and Economic Welfare of Small Towns

Besser, T. L., Recker, N., Parker, M. — Fri, 02 Oct 2009 12:10:05 PDT

The purpose of this study was to determine if the outcomes of economic development result in the anticipated economic and social benefits.The authors differentiated between the proximal outcomes of development (e.g., attracting a new employer) and their distal outcomes (e.g., increased employment and income). Indicators of economic change from secondary sources were merged with primary data from resident surveys and key informants’ interviews for 99 small Iowa towns for the analyses. Findings show that the opening of absentee-owned employers had positive economic benefits compared to the situation in other similar towns. However, it was not accompanied by gains in quality of life. The growth of local capitalism was associated with more positive quality of life outcomes. New amenities were not associated with economic or quality of life changes.

Perceptions of Regional Economic Development: Can Win--Lose Become Win--Win?

Gordon, V. — Fri, 02 Oct 2009 12:10:05 PDT

This study extends previous research that explored the perceptions of economic development decision makers in Illinois regarding regional economic development competition and cooperation.This research project further contributes to an understanding of the interlocal cooperative interactions that exist between and among local governments.The author uses a qualitative approach using in-depth interviews conducted in 2006-2007 of participants within selected regions of Missouri, Indiana, Kentucky, and Tennessee. In 2002, communities participated in cooperative efforts, understood the benefits of cooperation, and expressed a willingness to cooperate in regional economic development efforts, however, the myriad obstacles to cooperation significantly curtailed cooperative efforts; now, the communities examined in Missouri, Indiana, Kentucky, and Tennessee have moved to actual cooperative action. Interviewees recognize that they must cooperate to be successful in economic development efforts— suggesting perhaps that economic development previously perceived as an inherently win—lose game has become a win—win arrangement.

Do Environmental Regulations Impede Economic Growth? A Case Study of the Metal Finishing Industry in the South Coast Basin of Southern California

Thomas, W. — Fri, 02 Oct 2009 12:10:05 PDT

Air pollution emitted from firms and industries in the United States poses a significant threat to human health and the environment. Economists have traditionally opposed environmental regulations based on the argument that regulations reduce economic growth. Some scholars, however, have argued that polluting firms often adjust to environmental regulations through technological innovations that have the opposite effect. This study examines the effects of environmental regulations on economic growth through a case study of the metal finishing industry in the South Coast Basin of Southern California. The industry in the Basin has been regulated since 1988 by the South Coast Air Quality Management District (AQMD) as a result of the industry’s use of hexavalent chromium. Based on a comparative analysis of the metal finishing industries in Chicago and Detroit, it appears that the AQMD regulations have not had a detrimental impact on the growth of the industry in the Basin.

Assessing Factors Associated With Listing a Historic Resource in the National Register of Historic Places

Maskey, V., Brown, C., Lin, G. — Fri, 02 Oct 2009 12:10:05 PDT

Previous research reveals various economic and social impacts in the community from listing historic resources in the National Register of Historic Places; however, information on underlying community factors that influence these listings has not been examined and could be useful for policy makers. The current study examines the socioeconomic, institutional, and location factors influencing the listing of historic resources in the National Register in the Appalachian state of West Virginia.Two separate models of total historic listings and rate of historic house listings in the National Register identify the following: number of higher education institutions and older houses, rural area, more than one historic preservation organization, proportion of females, and the share of income in the service economy. Age, poverty rate, and the Gini coefficient of income inequality have an inverse relationship with listing.

The Impacts of Variations in Development Context on Employment Growth: A Comparison of Central Cities in Michigan and Ontario, 1980-2006

Jacobs, A.J. — Fri, 02 Oct 2009 12:10:05 PDT

This study compares post-1980 central city employment trends in the state of Michigan and the province of Ontario, similar-sized, closely linked by trade, and situated within the same natural region but in different federalist nations. Guided by interviews with 124 development officials, the study describes how variations in Michigan’s and Ontario’s central cities’ employment mix, "state" approach to development, framework for local authority, and sociodemographic dynamics (e.g., interracial relations, racial distribution, and others) have been among several embedded or contextual factors fostering divergent employment trends in their respective central cities.The study’s findings also demonstrate how state/provincial embeddedness has remained especially influential.To help bridge the gap between theory and concrete public policy making, the article’s conclusion offers a set of factors to be considered by scholars and practitioners in their efforts to understand and compare growth trends in urban areas.As a group, these elements are called the contextualized model of urban-regional development.

Book Review: Mitchell, J. (2008). Business Improvement Districts and the Shape of American Cities. Albany: State University of New York Press

Bauroth, N. — Fri, 02 Oct 2009 12:10:05 PDT

Dedication

Thu, 02 Jul 2009 14:31:15 PDT

Utilizing Affirmative Action in Public Sector Procurement as a Local Economic Development Strategy

Bates, T. — Thu, 02 Jul 2009 14:31:15 PDT

Using detailed spending and survey data of a large local governmental authority, this study analyzes how actual preferential procurement policies affected minority business enterprises (MBEs) selling to government clients. Current public sector preferential procurement policies have evolved in an environment of legal constraints in which procurement spending targeting MBEs has often been viewed as reverse discrimination. The objective of achieving a "level playing field" was adopted in response to this legal environment. Preferential procurement policies often miss their objectives, achieving perverse outcomes such as minimal assistance to MBEs and negligible local economic development impacts. Strategies for simultaneously achieving fundamental fairness in government procurement while increasing MBE capacity and job creation are identified.

Skill-Based Development of Entrepreneurs and the Role of Personal and Peer Group Coaching in Enterprise Development

Kutzhanova, N., Lyons, T. S., Lichtenstein, G. A. — Thu, 02 Jul 2009 14:31:15 PDT

This article argues that skill building lies at the heart of entrepreneurs' success, and it seeks to begin the process of understanding how skills can best be developed. The authors begin with a discussion of skill building and why it must be the focus of productive enterprise development efforts. They then examine a unique enterprise development program in central Appalachia that uses a system of blended personal and peer group coaching to develop the skills of its client entrepreneurs. By triangulating the results of in-depth interviews with entrepreneurs, coaches, and the managers of the program, the research reported here creates a set of comparative case studies that sheds light on how coaching can affect the way entrepreneurs learn. The findings have implications for how entrepreneurs can be more effectively assisted.

Off the Mark?: Efficiency in Targeting the Most Marketable Sites Rather Than Equity in Public Assistance for Brownfield Redevelopment

McCarthy, L. — Thu, 02 Jul 2009 14:31:15 PDT

Targeting public redevelopment funding toward the most marketable brownfields is viewed as an economically efficient use of scarce resources because it may guarantee the greatest likelihood of success. But to what extent does this policy result in spatial and social inequities by neglecting contaminated sites in distressed neighborhoods containing minority and low-income populations? This case study of Milwaukee, Wisconsin, identified that tracts with above-average percentages of African Americans and Hispanics, although containing above-average numbers of brownfields per square mile and higher percentages of brownfields compared to percentage of the city's area, had below-average city-assisted redevelopments as a percentage of all brownfields. A policy implication is that despite difficulties promoting brownfield redevelopment in distressed neighborhoods, in addition to economic efficiencies, more emphasis is needed on the social benefits of public assistance for brownfield redevelopment, including potential spillover benefits, such as crime reduction and health improvements for surrounding neighborhoods.

Rural Economic Development in the United States: An Evaluation of the U.S. Department of Agriculture's Business and Industry Guaranteed Loan Program

Johnson, J. — Thu, 02 Jul 2009 14:31:15 PDT

The U.S. Department of Agriculture's Business and Industry (B&I) Guaranteed Loan Program guarantees loans made by rural banks to rural businesses. The author evaluates B&I's effectiveness in increasing employment using basic ordinary least squares (OLS) and propensity score matching models. The author finds a robust association between loan reception and increased employment growth. A loan of $1,000 per capita is accompanied by a 3% to 6% increase in employment-per-capita growth and a 3% to 5% decrease in earnings-per-worker growth over the 2 years after the loan, leaving the effect on total county earnings indeterminate. The author concludes that the B&I loan program subsidizes loans associated with increased employment growth, although the jobs created are lower paying than average.

Are Hospitals an Export Industry?: Empirical Evidence From Five Lagging Regions

Nelson, M. — Thu, 02 Jul 2009 14:31:15 PDT

Hospitals make substantial contributions to local and regional economies through the purchase of goods and services and the employment of large numbers of workers. In addition, research hospitals are a key component of the knowledge-based economy supporting an experienced and educated workforce and originating and transferring knowledge and innovation. Despite their importance, hospitals have been understudied from an economic development perspective. The lack of attention is, in part, because of the perception of health care as a "nonbasic" or locally serving activity that has little impact on driving a metropolitan area's economic development. This article uses patient-origin data from the 2004 American Hospital Directory to determine the magnitude of Medicare exports from 62 hospitals in five slow-growth or lagging metropolitan areas. This research indicates that hospitals are substantial contributors to the economic base of these regions and identifies characteristics of top exporting hospitals.

Getting Income Shares Right: A Panel Data Investigation for Countries of the OECD

Abu-Qarn, A. S., Abu-Bader, S. — Thu, 02 Jul 2009 14:31:15 PDT

This article presents estimates of the shares of inputs in income for countries of the Organization for Economic Cooperation and Development, utilizing advanced panel data techniques. Its findings are as follows: A share of physical capital of over 0.50, as opposed to the conventional one third, is robust to several specifications of the production function; the organization's growth was driven mainly by accumulation of resources and not technological gains; and following the first oil shock, the share of physical capital dropped, whereas the share of human capital rose. Consequently, using the conventional shares may have led to overstating the severity of the post-1973 productivity slowdown.

Book Review: Wiewel, W., & Perry, D. (2008). Global Universities and Urban Development: Case Studies and Analysis. Armonk, NY: M.E. Sharpe

Etienne, H. F. — Thu, 02 Jul 2009 14:31:15 PDT

Book Review: Watson, D. J., & Morris, J. C. (Eds.). (2008). Building the Local Economy: Cases in Economic Development. Athens, GA: Carl Vinson Institute of Government

Grover, L. T. — Thu, 02 Jul 2009 14:31:15 PDT

Assessing the Effect of Publicly Assisted Brownfield Redevelopment on Surrounding Property Values

De Sousa, C. A., Wu, C., Westphal, L. M. — Mon, 06 Apr 2009 10:32:06 PDT

This study measures and compares the impact of publicly assisted brownfield redevelopment on nearby residential property values in Milwaukee and Minneapolis. It also examines the influence of land use, neighborhood characteristics, and other redevelopment factors on this impact. The research approach incorporates a hedonic method to quantify nearby property value effects at more than 100 brownfield projects, and stakeholder interviews are used to assess perceived impacts to real estate conditions. The results reveal that the spillover effect in terms of raising surrounding property values is significant in both quantity and geographic scope, as redevelopment led to a net increase of 11.4% in nearby housing prices in Milwaukee and 2.7% in Minneapolis. It also reveals that project size, value, and the amount of public funding have minor impacts on this effect; factors such as proximity to major roads, distance from rail, and higher incomes have greater positive impacts.

Determinants of Environmental Performance: Pulp and Paper Mills, Regulations, and Community in Maine

Bouvier, R. — Mon, 06 Apr 2009 10:32:06 PDT

Recent theories of firms' environmental behavior propose that numerous factors influence a firm's environmental decision-making process. Economic considerations play a central role, but interactions between the economic climate, regulatory structure, and social culture in which a firm operates are more important than economic considerations alone. This article investigates the conditions surrounding eight existing pulp and paper mills in Maine that influence the level of compliance. Factors unique to Maine's economy, history, and relationship between people and their environment come together to influence firms' environmental performance and attitude. Such "place-based characteristics" are crucial in designing policies to promote economic development and protect environmental quality.

Biotechnology in Cincinnati: Clustering or Colocation?

Ferrand, Y., Kelton, C. M. L., Chen, K., Stafford, H. A. — Mon, 06 Apr 2009 10:32:06 PDT

This research, conducted via interviews at 32 biotechnology firms, which provide rare information on actual firm interactions, elucidates the factors that influence the location and growth of the biotechnology sector in a typical American metropolitan area. Results indicate that most of the biotechnology firms within the Cincinnati region are there because of entrepreneurial ties with universities and research hospitals in the area, not because the region has specific advantages for biotechnology firms compared to other metropolitan areas of similar size. The authors find that interfirm linkages range from extremely weak to nonexistent. No specialized labor force exists to support biotechnology firms, nor are there specialized infrastructure and business services. No biotechnology-dedicated government office exists. In summary, the authors see more colocation than interactive clustering of biotechnology firms, implying that economic development efforts to enhance interfirm linkages are likely to be less effective than support for hospital and university research and education.

Image Busters: How Prison Location Distorts the Profiles of Rural Host Communities and What Can Be Done About It

Burayidi, M. A., Coulibaly, M. — Mon, 06 Apr 2009 10:32:06 PDT

Since the 1980s, rural communities have embraced prisons as a tool for economic development following the decline in resource-based industry in rural areas. Although there are economic benefits from prisons, the drawback is that for small rural communities, prisons change the demographic composition of the communities' residents and, as portrayed by Census Bureau data, make them unattractive locations for industry. The inmate population affects factors such as high poverty rate, lower educational achievement, and low per capita income. This article suggests that rural communities should take proactive measures to change this image by providing a methodology for reanalyzing census data to portray their "true" image to potential investors.

Is Local Discretionary Sales Tax Adopted to Counteract Fiscal Stress?: The Case of Florida Counties

Kim, D., Bae, S. S., Eger, R. J. — Mon, 06 Apr 2009 10:32:06 PDT

Economic development has traditionally relied on operational resources concentrated in the government's general fund balance for postinfrastructure operations. In this article, the authors explore the phenomenon of infrastructure surtax adoption for development and operation in an empirical analysis of Florida counties. The authors focus their analysis on the factors that influence the adoption grounding the analysis in the theoretical framework of the policy innovation and adoption literature. Their results support earlier findings; however, the most striking point is that fiscal stress and direct tax burden do not statistically influence the infrastructure surtax innovation.

Revisiting McCallum's Border Puzzle

An, G., Puttitanun, T. — Mon, 06 Apr 2009 10:32:06 PDT

The "border effect" in international trade refers to a situation in which there is higher volume of trade within a country compared with the volume of trade across the country's borders. Although trade economists are not surprised at the existence of a border effect, they do find the significant size of the estimated effect in the empirical literature perplexing. In this study we authors show why previous empirical studies have had an upwards bias in the estimation of the border effect. The study also provides more reasonable estimates of McCallum's estimated border effect in United States—Canada trade.

Book Review: Massey, D. (2007). World City. Cambridge, UK: Polity

Finkle, J. A. — Mon, 06 Apr 2009 10:32:06 PDT

Book Review: Bowles, S., Durlauf, S. N., & Hoff, K. (Eds.). (2006). Poverty Traps. New York: Russell Sage

Kimelberg, S. M. — Mon, 06 Apr 2009 10:32:06 PDT

Adding Meaning to Measurement: Evaluating Trends and Differences in Innovation Capacity Among the States

Hall, J. L. — Tue, 06 Jan 2009 14:33:00 PST

How do states compare to one another, and to themselves, in innovation capacity and past innovation performance? Are there groups of states that are more or less similar in innovation capacity composition? Because different score dimensions vary independently, it is possible for states to be high on some dimensions and low on others. In an effort to give greater meaning to innovation index scores, it is necessary to evaluate the relationships among them. This article subjects Hall's innovation capacity index scores to cluster analysis to reveal clusters of states that are similar in innovation capacity levels across the three dimensions considered. A cluster typology is created, and state changes in typology are observed and compared over the 20-year period of the data set. Patterns observed across states and over time will help policy makers to identify major changes in their typology that may reflect goal progress or regression.

Who Wins From Local Economic Development?: A Supply Decomposition of U.S. County Employment Growth

Partridge, M. D., Rickman, D. S., Li, H. — Tue, 06 Jan 2009 14:33:00 PST

The relative effectiveness of local economic development efforts often hinges on the question of who benefits from regional growth. The authors address this issue by decomposing U.S. county-level employment into four supply components: net commuting, the employment (unemployment) rate, the labor force participation rate, and population. They find that over all counties, net commuting represents the largest supply response, although this primarily holds in metropolitan areas. The benefits to original residents, measured as the sum of unemployment and labor force participation responses, are larger in rural counties. They also are larger in central-city counties of the larger metropolitan areas. The greatest benefits are found in persistent-poverty nonmetropolitan counties as well as in mining and manufacturing-dependent nonmetropolitan counties. Finally, sensitivity analysis indicates the importance of geographical scale and periodicity in assessing the issue of who benefits from regional job growth.

Federal Credit Programs and Local Economic Performance

Shaffer, S., Collender, R. N. — Tue, 06 Jan 2009 14:33:00 PST

Several theories of externalities and asymmetric information suggest a positive role for government programs to assist credit markets, though potential distortions by special interests carry attendant dangers. The authors examine the empirical association between funding by several federal government programs and subsequent economic performance, measured six ways, for U.S. metropolitan areas during the 1990s. Significant differences are found across programs and performance measures. Observed trade-offs suggest a need to compare policy objectives with acceptable costs in many cases. Overall, the results are consistent with theoretical predictions and with some standard policy objectives.

The Impact of Enterprise Zones on Resident Employment: An Evaluation of the Enterprise Zone Programs of California and Florida

Elvery, J. A. — Tue, 06 Jan 2009 14:33:00 PST

This article examines whether the enterprise zone programs of California and Florida affected the employment probabilities of zone residents. To do this, the author develops a methodology for estimating the effects of programs in which selection for treatment occurs at the neighborhood level, whereas the determination of the outcome of interest occurs at the individual level. This methodology is a combination of individual-level employment probability models and neighborhood-level propensity score matching. Studying programs that provided especially strong incentives to hire disadvantaged workers, the author finds no evidence that these enterprise zones affected the employment of zone residents.

The Impact of Immigration on Computer Manufacturing in the 1990s

Howland, M., Nguyen, D. B. L. — Tue, 06 Jan 2009 14:33:00 PST

This article examines the impact of immigration on the location of the computer and computer peripherals manufacturing (SIC 357) and electronic equipment manufacturing (SIC 367) industries in the United States. The authors hypothesize that to stay competitive and keep production costs low, the computer and computer peripherals manufacturing and electronic equipment manufacturing businesses that remain in the United States are shifting employment to areas receiving large numbers of immigrants. Using industry and immigration data by metropolitan area, the authors examine the impact of immigration on industry employment change during the 1990 decade. Results show that cities that attracted immigrants experienced slower declines in computer employment than they would have in the absence of immigration.

Ethanol and the Local Economy: Industry Trends, Location Factors, Economic Impacts, and Risks

Low, S. A., Isserman, A. M. — Tue, 06 Jan 2009 14:33:01 PST

Ethanol has been embraced enthusiastically as a solution to many problems, including national energy security, global warming, air pollution, farm incomes, and local economic development. The industry has boomed in the United States: There were 54 ethanol plants in 2000, 134 by the end of 2007, 171 in mid-September 2008. Estimates of the industry's effects on local economies vary wildly, chiefly because of assumptions regarding the corn industry. This article presents an overview of the industry, its location, and the public policy umbrella that supports its growth. It analyzes what happens to the local economy when a county adds an ethanol plant, demonstrates what must be done to modify input–output models to capture those effects, and applies the approach to proposed plants in four counties. An ethanol plant provides the enticing benefits of a manufacturing plant with 35 to 40 jobs, but several characteristics and uncertainties of the industry merit a careful look when making local economic development decisions.

Book Review: Cornia, G. C., & Riddell, J. (Eds.). (2008). Toward a Vision of Land in 2015. Cambridge, MA: Lincoln Institute of Land Policy

Jolley, G. J. — Tue, 06 Jan 2009 14:33:01 PST