IDEAS home Printed from https://ideas.repec.org/a/sae/ecdequ/v25y2011i2p182-192.html
   My bibliography  Save this article

Countering the Rhetoric of Emerging Domestic Markets: Why More Information Alone Will Not Address the Capital Needs of Underserved Communities

Author

Listed:
  • Julia Sass Rubin

    () (Rutgers University, New Brunswick, NJ, USA)

Abstract

This article critiques the idea that the private sector can take the lead in addressing the capital needs of underserved communities, focusing specifically on the emerging domestic markets approach advocated by Milken Institute researchers. This approach has three limitations. First, it treats all underserved communities as interchangeable, ignoring that they differ in important ways in the nature and causes of their capital constraints. Second, it claims that underserved communities lack access to capital primarily as a result of information failure, overlooking numerous other obstacles that discourage investment in such communities. Third, its overarching assumption that the private sector can take the lead in meeting the capital needs of underserved communities is unrealistic because it fails to address these additional barriers to investment. The article recommends a more individualized approach to understanding the capital needs of underserved communities and recognition of the need for public sector leadership in solving this problem.

Suggested Citation

  • Julia Sass Rubin, 2011. "Countering the Rhetoric of Emerging Domestic Markets: Why More Information Alone Will Not Address the Capital Needs of Underserved Communities," Economic Development Quarterly, , vol. 25(2), pages 182-192, May.
  • Handle: RePEc:sae:ecdequ:v:25:y:2011:i:2:p:182-192
    as

    Download full text from publisher

    File URL: http://edq.sagepub.com/content/25/2/182.abstractFileFormat:text/html
    Download Restriction: no

    References listed on IDEAS

    as
    1. M I Gould & E Fieldhouse, 1997. "Using the 1991 Census SAR in a Multilevel Analysis of Male Unemployment," Environment and Planning A, , vol. 29(4), pages 611-628, April.
    2. Timothy J. Bartik, "undated". "Who Benefits from Local Job Growth: Migrants or Original Residents?," Upjohn Working Papers and Journal Articles tjb1993rs, W.E. Upjohn Institute for Employment Research.
    3. Greenwood, Michael J, et al, 1991. "Migration, Regional Equilibrium, and the Estimation of Compensating Differentials," American Economic Review, American Economic Association, vol. 81(5), pages 1382-1390, December.
    4. Reza, Ali M, 1978. "Geographical Differences in Earnings and Unemployment Rates," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 201-208, May.
    5. Harald Badinger & Thomas Url, 2002. "Determinants of regional unemployment: some evidence from Austria," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 977-988.
    6. Madhu Mohanty, 1998. "Do US employers discriminate against females when hiring their employees?," Applied Economics, Taylor & Francis Journals, vol. 30(11), pages 1471-1482.
    7. Maria Francesca Cracolici & Miranda Cuffaro & Peter Nijkamp, 2007. "Geographical Distribution of Unemployment: An Analysis of Provincial Differences in Italy," Growth and Change, Wiley Blackwell, vol. 38(4), pages 649-670.
    8. Enrique Lopez-Bazo & Tomas Del Barrio & Manuel Artis, 2005. "Geographical distribution of unemployment in Spain," Regional Studies, Taylor & Francis Journals, vol. 39(3), pages 305-318.
    9. Robert E. Hall, 1970. "Why Is the Unemployment Rate So High at Full Employment?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 1(3), pages 369-410.
    10. Olga Alonso-Villar & Coral Del Río, 2008. "Geographical Concentration of Unemployment: A Male-Female Comparison in Spain," Regional Studies, Taylor & Francis Journals, vol. 42(3), pages 401-412, April.
    11. Stephen T. Marston, 1985. "Two Views of the Geographic Distribution of Unemployment," The Quarterly Journal of Economics, Oxford University Press, vol. 100(1), pages 57-79.
    12. M I Gould & E Fieldhouse, 1997. "Using the 1991 Census SAR in a multilevel analysis of male unemployment," Environment and Planning A, Pion Ltd, London, vol. 29(4), pages 611-628, April.
    13. N Bullen & K Jones & C Duncan, 1997. "Modelling complexity: analysing between-individual and between-place variation -- a multilevel tutorial," Environment and Planning A, Pion Ltd, London, vol. 29(4), pages 585-609, April.
    14. Mark Partridge & Dan Rickman, 1997. "The Dispersion of US State Unemployment Rates: The Role of Market and Non-market Equilibrium Factors," Regional Studies, Taylor & Francis Journals, vol. 31(6), pages 593-606.
    15. Glaeser Edward L, 2005. "Should the Government Rebuild New Orleans, Or Just Give Residents Checks?," The Economists' Voice, De Gruyter, vol. 2(4), pages 1-7, September.
    16. Nabil Khattab, 2006. "Ethnic and regional determinants of unemployment in the Israeli labour market: A multilevel model," Regional Studies, Taylor & Francis Journals, vol. 40(1), pages 93-105.
    17. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ecdequ:v:25:y:2011:i:2:p:182-192. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.