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Overhauling and Revitalizing Federal Economic Development Programs

Author

Listed:
  • Ann Markusen

    (University of Minnesota, markusen@umn.edu)

  • Amy Glasmeier

    (Penn State University)

Abstract

Although federal economic development has fallen on hard times in the past decade, it remains important, especially in rural areas. In addition, the federal government can play key regulatory roles. We review the still powerful case for place-based approaches but argue that a number of program and policy reforms are pressing. Programs should place greater emphasis on human capital than they have and should explore the potential for consumption base strategies. Incentive competition should be regulated nationally. Greater coordination of economic development strategies across federal agencies is badly needed, and Congress should explore blocking up federal funding regionally. Better targeting and performance standards should be implemented and changes in crude place-based eligibility explored. Finally, rigorous and relevant evaluation research should be methodically undertaken, the results disseminated, and programs subsequently redesigned. We believe that these reforms can revitalize the practice of federal economic development and invigorate political support for it.

Suggested Citation

  • Ann Markusen & Amy Glasmeier, 2008. "Overhauling and Revitalizing Federal Economic Development Programs," Economic Development Quarterly, , vol. 22(2), pages 83-91, May.
    • Handle: RePEc:sae:ecdequ:v:22:y:2008:i:2:p:83-91
    DOI: 10.1177/0891242408314281
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    References listed on IDEAS

    as
    1. Timothy J. Bartik, 2007. "Solving the Problems of Economic Development Incentives," Book chapters authored by Upjohn Institute researchers, in: Ann Markusen (ed.), Reining in the Competition for Capital, chapter 5, pages 103-139, W.E. Upjohn Institute for Employment Research.
    2. Markusen, Ann, 2007. "A Consumption Base Theory of Development: An Application to the Rural Cultural Economy," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(1), pages 1-15, April.
    3. Markusen, Ann, 2007. "A Consumption Base Theory of Development: An Application to the Rural Cultural Economy," Agricultural and Resource Economics Review, Cambridge University Press, vol. 36(1), pages 9-23, April.
    4. Amy Glasmeier & Lawrence Wood, 2005. "Policy Debates Analysis of US Economic Development Administration Expenditure Patterns over 30 Years," Regional Studies, Taylor & Francis Journals, vol. 39(9), pages 1261-1274.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Marla Nelson, 2009. "Are Hospitals an Export Industry?," Economic Development Quarterly, , vol. 23(3), pages 242-253, August.
    2. Robert T. Greenbaum & Jim Landers, 2009. "Why Are State Policy Makers Still Proponents of Enterprise Zones? What Explains Their Action in the Face of a Preponderance of the Research?," International Regional Science Review, , vol. 32(4), pages 466-479, October.
    3. Robert T. Greenbaum & Blair D. Russell & Tricia L. Petras, 2010. "Measuring the Distribution of Economic Development Tax Incentive Intensity," Economic Development Quarterly, , vol. 24(2), pages 154-168, May.
    4. Josh Matti, 2019. "The Political Economy of the U.S. Department of Agriculture Rural Business-Cooperative Service," Economic Development Quarterly, , vol. 33(3), pages 203-211, August.
    5. Brad R. Watts & George A. Erickcek & Jacob Duritsky & Kevin O’Brien & Claudette Robey & Jim Robey, 2009. "What Should EDA Fund? Developing a Model for Pre-Assessment of Economic Development Investments," Upjohn Working Papers 09-155, W.E. Upjohn Institute for Employment Research.
    6. Gebremeskel Gebremariam & Tesfa Gebremedhin & Peter Schaeffer, 2012. "County-level determinants of local public services in Appalachia: a multivariate spatial autoregressive model approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 175-190, August.
    7. Phillip Singerman, 2008. "Repurposed Federal Economic Development Programs," Economic Development Quarterly, , vol. 22(2), pages 99-106, May.
    8. Mark Drabenstott, 2008. "An Effective Overhaul of Federal Economic Development Policy," Economic Development Quarterly, , vol. 22(2), pages 92-98, May.
    9. Geiguen Shin & Byong‐Kuen Jhee, 2021. "Better service delivery, more satisfied citizens? The mediating effects of local government management capacity in South Korea," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 8(1), pages 42-67, January.
    10. Geiguen Shin & Jeremy L. Hall, 2018. "Exploring the Influence of Federal Welfare Expenditures on State-Level New Economy Development Performance: Drawing From the Diffusion of Innovation Theory," Economic Development Quarterly, , vol. 32(3), pages 242-256, August.
    11. Brad R. Watts & George A. Erickcek & Jacob Duritsky & Kevin O'Brien & Claudette Robey & James Robey, 2011. "What Should EDA Fund? Developing a Model for Preassessment of Economic Development Investments," Economic Development Quarterly, , vol. 25(1), pages 65-78, February.

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