Local Economic Development: Analysis, Practices, and Globalization

Local economies are the building blocks for national ones. An updated and expansive core text, the Second Edition of Local Economic Development: Analysis, Practices, and Globalization provides a comprehensive introduction to the economics of local economic development. Delving into cutting-edge topics such as cluster analysis, creative class orientation, competitive advantage, social capital, business expansion and retention, and learning regions, this clearly written interdisciplinary text connects theories with real-life examples and offers the reader pragmatic tools for future application, including a valuable "how-to" understanding regarding important qualitative tools and their interpretation.       Importantly, this text is uniquely accessible to students who lack a background in the field of economics. New to this Edition Offers a global emphasis: Local economic development is clearly linked to national development throughout, making the text useful for adding an international component to traditional national economic development courses. Features an institutionalist focus: The text describes the ways political and the social environments interact with and influence the local development process, giving instructors opportunities to localize course material. It also addresses equity issues and the importance of interregional linkages, demonstrating the importance of an interdisciplinary approach. Demonstrates comparative versus competitive advantages: The author illustrates the changing perceptions of the sources of local advantages, given the dynamic global and technological environments. Provides valuable information on careers in the field: Students will learn about jobs where knowledge of local economic development is a primary or useful requirement, from opportunities as development officials in local agencies to banking to community development.   Intended Audience This is an ideal core text for undergraduate and graduate students of economics, political science, geography, public administration, and urban and regional planning. It is also a valuable resource for economic development professionals, NGOs, County Commissioner offices and others involved in the economic aspects of local economic development.  

Table of Contents:
Chapter 1. Local Economic Development in a Global Market How Economists View the World Models and Assumptions Individual Behavior and Utility Maximization Ideological Perspectives on Market Operations How Markets Work Supply and Demand Supply, Demand, and Efficiency Markets Are Not Always Efficient The Role of Profits Economic Development Defined Careers in LED The Nature of Regions Types of Regions Local, National, and Global Economic Development Chapter 2. Business Location, Expansion, and Retention Locational Factors Inertia Transportation Cost Minimizing Models Production Costs National Political Climate and Stability Opportunity Creation The Decision Making Process Motivations Practical Limitations on the Choice Process Steps in the Corporate Site Selection Process Changing Relative Importance of Locational Factors Surveys of Location Factors Survey Findings Past to Present Conducting Business Retention and Expansion Programs 3. Markets, Urban Systems, and Local Development Demand and Market Areas Demand in a Spatial Setting Competition for Markets Threshold Demand and Range Determinants of Market Size The Urban Hierarchy and Urban System Central Places Goods and Services According to Urban Rank Changing Urban Patterns An Evaluation of the Central-Place Approach Considerations Extraneous to Central-Place Theory Transportation Costs Market Overlap, Rate Absorption, and Price Discrimination Product Differentiation Agglomeration Economies Institutional Factors Non-employment Residential Locations and Commuting Empirical Evidence Globalization and Urban (City) Systems How to Measure Areas of Influence Survey Techniques Reilly’s Law of Retail Gravitation Probabilistic Models Retail Spending An Example Hinterland Expansion Strategies 4. Economic Interdependence and Local Structure Agglomeration Economies Internal Agglomeration Economies Direct Sales Purchases Linkages Localization Economies Urbanization Economies Recap Cluster Analysis Measures of Economic Structure North American Industrial Classification System (NAICS) Location Quotients Estimating Export Employment with Location Quotients Surveys to Determine Export Activities Coefficients of Specialization Occupational Structure Other Aspects of Regional Structure 5. Regional Growth and Development Stages of Growth Industrial Filtering (Life Cycle Model) Adding New Work to Old How Do Cities Move from One State to the Next? Circular Flow Diagram Elements of the Circular Flow Model Equilibrium and Change The Multiplier The Export Base Theory of Growth The Formal Income Model How to Operationalize the Export Base Approach Impact Studies and Export Base Forecasts Critique of the Export-Base Approach Primacy of Exports Import Substitution Productivity Exports Not Always Exogenous Small versus Large Regions Feedbacks among Regions Non-basic Activities May Not Increase Long-Run Instability of the Multiplier Excessive Aggregation Supply-Side Approaches Intermediate Inputs Entrepreneurship Capital Land (Environmental Resources) Labor Supply and Demand Side Approaches: A Synthesis 6. Additional Tools for Regional Analysis Shift and Share Analysis An Application Critique Econometric and Simulation Models Econometric Models Caveats Importance-Strength Analysis Input-Output: Analysis The Transactions Table The Table of Direct Coefficients The Table of Direct and Indirect Coefficients Input-Output Applications 7. Institutionalist Perspectives on Local Development External Benefits from Economic Development Job and Income Creation Fiscal Improvement Physical Improvements Who Benefits From Growth? Characteristics of Resource Supply Opponents of Growth Subsidies, Competition and Economic Development Is Local Economic Development a Zero Sum Game? Inefficiency and Oversubsidization Discretionary versus Entitlement Subsidies Cost Minimization versus Human Capital Strategies Social Capital and Economic Development Generic Economic Problems and Social Capital Ambiguous Reception of Social Capital Social Capital and Local Development Strategies Using Social Capital to Mitigate Economic Development Conflicts Social Network Analysis: Getting the Right People to the Table Targeting Development Efforts Cluster-Based Economic Development 8. Local Economic Development in a Flattening World Models of Trade and Resource Flows Comparative Advantage Resource Mobility Economics of Migration Retiree-Migrant Development Strategy Mobility of Capital Innovations and Ideas Spatial Diffusion Implications for Regional Development Mobility and Development Policy Jobs-to-People versus People-to-Jobs Immigration and Urban Development 9. Land Use What Gives Land Value? Land Rents and Value The Nature of Rent, Productivity and Access Highest and Best Use The Land Development Process Developer Goals The Market Study Environmental Impact Statements Profit Feasibility The Development Decision Implications of Financial Analysis for LED Land-Use Patterns The Monocentric City Model The Desity Gradient Roads and Axial Development Agglomeration and the Multiple-Nuclear City Speculation Changing Land Use Patterns Evaluating Metropolitan Spread (Urban Sprawl) Land Use and Economic Development Tools Zoning and Its Critics Flexibility and Land Use Regulations The Eminent Domain Controversy Rights to Land and Economic Development 10. Housing and Neighborhood Development Fundamentals of Housing Economics Hedonic Pricing Uncertainty, Market Imperfections, and Competition Residential Location and Neighborhood Change The Filtering-Down Theory The Trade-Off Model The Cultural Agglomeration Model The Tiebout Model The Aggregate Economic Fallout Model Initiating and Perpetuating the Change Process Housing Policy Issues Rent Control versus Market Forces Income Support versus Housing Assistance Supply versus Demand Side Assistance Ghetto Dispersal versus Ghetto Improvement Dwelling-Unit versus Neighborhood Development Linkage Between Local Housing and Global Financial Markets Retail and Commercial Neighborhoods The Social Economy of Neighborhoods Community Development Corporations Cooperatives Community Gardens 11. Poverty and Lagging Regions The Nature of Poverty Conceptual Approaches Demographics of Poverty Spatial Concentrations of Urban Poverty Regional Linkages: The Spread and Backwash Effects Empirical Studies of Spatial Linkages Spatial Linkages and Theories of Spatial Poverty Policy Issues Strengthening Linkages Improving Productivity Addressing Wage Rigidities Employment Guarantee Schemes in India Income Support 12. Local Governance, Finance, and Regional Integration Spatial Perspectives on Government Functions Distribution and the Race to the Bottom Local Allocation Public Transportation – An Example Size and Scope of Local Governments Economies and Diseconomies of Scale Decision-Making Costs Improving Government Efficiency Using Prices and Fees Local Taxation and Economic Development Accountability Intergovernmental Competition Intergovernmental Grants and Coordination Rearranging Functions Privatization Market Based Reforms in Education Fiscal Impact and Benefit-Cost Studies Fiscal Impact Studies Benefit-Cost Analysis 13. Local Economic Development Planning The Future and Local Development Concern with Values and Attitudes Technological Change Systems Orientation Importance of Timing Planning Perspectives on Development Policy The Planning Process Limits of Planning Planning and Future Studies Tools Delphi Forecasting Games Scenarios Environmental Scanning About the Author