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Achieving Sustainable Economic Growth and Development in Communities across the United States

Author

Listed:
  • Oluwole Owoye

    (Western Connecticut State University, Danbury, Connecticut, USA)

  • Olugbenga A. Onafowora

    (Susquehanna University, Selinsgrove, Pennsylvania, USA)

Abstract

This study provides a theoretical analysis of sustainable economic growth and development in different communities across the United States. In this paper, we contend that there are two distinct communities at the citywide or statewide or nationwide levels. In big cities and towns nationwide, the wealthy communities co-exist with the poor-marginalized communities. The main objective of any country, including the United States, is to achieve high employment and sustainable economic growth and development at all levels. Countries worldwide are made up of different communities, therefore, sustainable growth and development would be achievable if policymakers adopt and implement growth policies that bridge the gap between the wealthy and poor-marginalized communities. To analyze this for the United States, we use the Cobb-Douglas-type aggregate production function that assumes technology as knowledge capital – a public good that is nonrival and nonexcludable, and we highlight five important inputs (physical capital, human capital, security/safety, trust, and social capital) that are plausible determinants of the income disparity between and among communities or cities across the United States. We assert that the wealthy communities in the United States tend to invest more in physical capital, human capital, security/safety of lives and properties, entrenched trust, and social capital than the poor-marginalized communities; therefore, these differences could explain the disparity between communities. We argue that it is possible to attain apparent convergence and minimize income inequality in order to achieve sustainable growth and development across communities in the United States if policymakers address these important fundamental causes of the disparity in income. We conclude that the poor-marginalized communities can catch-up with the wealthy communities by intensifying their investment in these relevant factors of production; and that capital can flow from the wealthy to the poor-marginalized communities (or in both directions) if both communities build mutually on trust, security/safety, and social capital. Gli obbiettivi della crescita economica e dello sviluppo sostenibile nelle diverse comunità degli Stati Uniti Questo studio fornisce un’analisi teorica della crescita economica e dello sviluppo sostenibili in differenti comunità degli Stati Uniti. La tesi sostenuta è che ci sono due distinte comunità a livello di città, di paese o di stato. Nelle grandi città di un paese le comunità agiate convivono con quelle povere. L’obiettivo principale di tutti i paesi, compresi gli Stati Uniti, è raggiungere un elevato tasso di occupazione e una crescita economica e uno sviluppo sostenibili a tutti i livelli. Tutti i paesi del mondo sono costituiti da comunità differenti, per questo motivo la crescita e lo sviluppo sostenibili si potrebbero realizzare se i governi adottassero e applicassero politiche di crescita in grado di colmare la distanza tra le comunità ricche e quelle povere. Per effettuare questa analisi negli Stati Uniti utilizziamo la funzione di produzione aggregata Cobb-Douglas, che considera la tecnologia come capitale di conoscenze – un bene pubblico non fruibile e non escludibile – e evidenziamo cinque importanti fattori (capitale fisico, capitale umano, sicurezza, fiducia e capitale sociale) che possono essere considerati determinanti della disparità di reddito tra le comunità o le città degli Stati Uniti. Vi sono evidenze che le comunità abbienti degli Stati Uniti tendono ad investire in capitale fisico, capitale umano, sicurezza delle persone e delle proprietà, radicamento della fiducia e capitale sociale più delle comunità povere ed emarginate. Quindi queste differenze possono spiegare la disparità tra le due comunità. Noi sosteniamo che sarebbe possibile ottenere una rilevante convergenza e minimizzare la diversità di reddito, realizzando così una crescita ed uno sviluppo sostenibili nelle comunità degli Stati Un

Suggested Citation

  • Oluwole Owoye & Olugbenga A. Onafowora, 2017. "Achieving Sustainable Economic Growth and Development in Communities across the United States," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 70(3), pages 391-410.
  • Handle: RePEc:ris:ecoint:0809
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    References listed on IDEAS

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    More about this item

    Keywords

    Sustainable Development; Poor-Marginalized Communities; Physical Capital; Human Capital; Trust; Secu;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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