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Relationship Between Growth and Prosperity in the 100 Largest U.S. Metropolitan Areas

  • Eben Fodor

    (Fodor & Associates LLC, Eugene, OR, USA)

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    This study examines the relationship between growth and economic prosperity in the 100 largest U.S. metropolitan areas to determine whether certain benefits commonly attributed to growth are supported by statistical data. The annual population growth rate of each metro area from 2000 to 2009 is used to compare economic well-being in terms of per capita income, unemployment rate, and poverty rate. The study finds that faster growth rates are associated with lower incomes, greater income declines, and higher poverty rates. Unemployment rates tend to be higher in faster growing areas, though the correlation is not statistically significant at the 95% confidence level. The 25 slowest growing metro areas outperformed the 25 fastest growing in every category and averaged $8,455 more in per capita personal income in 2009.

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    Article provided by in its journal Economic Development Quarterly.

    Volume (Year): 26 (2012)
    Issue (Month): 3 (August)
    Pages: 220-230

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    Handle: RePEc:sae:ecdequ:v:26:y:2012:i:3:p:220-230
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    1. Craig Gundersen & James Ziliak, 2004. "Poverty and macroeconomic performance across space, race, and family structure," Demography, Springer, vol. 41(1), pages 61-86, February.
    2. Victoria Basolo & Chihyen Huang, 2001. "Cities and Economic Development: Does the City Limits Story Still Apply?," Economic Development Quarterly, , vol. 15(4), pages 327-339, November.
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    6. Barbara Bergmann, 2010. "Is Prosperity Possible Without Growth?," Challenge, M.E. Sharpe, Inc., vol. 53(5), pages 49-56, September.
    7. Margaret E. Dewar, 1998. "Why State and Local Economic Development Programs Cause so Little Economic Development," Economic Development Quarterly, , vol. 12(1), pages 68-87, February.
    8. Roger B. Hammer & Gary P. Green, 1996. "Local Growth Promotion: Policy Adoption versus Effort," Economic Development Quarterly, , vol. 10(4), pages 331-341, November.
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