IDEAS home Printed from https://ideas.repec.org/p/upj/weupjo/04-100.html
   My bibliography  Save this paper

Small Cities Blues: Looking for Growth Factors in Small and Medium-Sized Cities

Author

Listed:
  • George A. Erickcek

    (W.E. Upjohn Institute for Employment Research)

  • Hannah McKinney

    (Kalamazoo College)

Abstract

The purpose of this exploratory study is to attempt to identify particular public policies which have the potential to increase the economic viability of smaller metropolitan areas and cities. We identify characteristics associated with smaller metro areas that performed better-than-expected (winners) and worse-than-expected (losers) during the 1990s, given their resources, industrial mix, and location as of 1990. Once these characteristics have been identified, we look for evidence that public policy choices may have promoted and enhanced a metro area's ability to succeed and to regain control of its own economic destiny. Methodologically, we construct a regression model which identifies the small metro areas that achieved higher-than-expected economic prosperity (winners) and the areas that saw lower-than-expected economic prosperity (losers) according to the model. Next, we explore whether indications exist that winners and losers are qualitatively different from other areas in ways that may indicate consequences of policy choices. A cluster analysis is completed to group the metro areas based on changes in a host of social, economic, and demographic variables between 1990 and 2000. We then use contingency table analysis and ANOVA to see if "winning" or "losing," as measured by the error term from the regression, is related to the grouping of metro areas in a way that may indicate the presence of deliberate and replicable government policy.

Suggested Citation

  • George A. Erickcek & Hannah McKinney, 2004. "Small Cities Blues: Looking for Growth Factors in Small and Medium-Sized Cities," Upjohn Working Papers and Journal Articles 04-100, W.E. Upjohn Institute for Employment Research.
  • Handle: RePEc:upj:weupjo:04-100
    as

    Download full text from publisher

    File URL: http://research.upjohn.org/cgi/viewcontent.cgi?article=1117&context=up_workingpapers
    Download Restriction: This material is copyrighted. Permission is required to reproduce any or all parts.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. H. D. Watts & J. D. Kirkham, 1999. "Plant Closures by Multi-locational Firms: A Comparative Perspective," Regional Studies, Taylor & Francis Journals, vol. 33(5), pages 413-424.
    2. Leon Shilton & Craig Stanley, 1999. "Spatial Patterns of Headquarters," Journal of Real Estate Research, American Real Estate Society, vol. 17(3), pages 341-364.
    3. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    4. Sheila A Martin & Richard Mchugh & S R Johnson, 1991. "The Influence Of Location On Productivity: Manufacturing Technology In Rural And Urban Areas," Working Papers 91-10, Center for Economic Studies, U.S. Census Bureau.
    5. Robert W. Wassmer, 1994. "Can Local Incentives Alter a Metropolitan City's Economic Development?," Urban Studies, Urban Studies Journal Limited, vol. 31(8), pages 1251-1278, October.
    6. Xavier Gabaix, 1999. "Zipf's Law and the Growth of Cities," American Economic Review, American Economic Association, vol. 89(2), pages 129-132, May.
    7. Paul D. Gottlieb, 1995. "Residential Amenities, Firm Location and Economic Development," Urban Studies, Urban Studies Journal Limited, vol. 32(9), pages 1413-1436, November.
    8. Crihfield John B. & Panggabean Martin P. H., 1995. "Growth and Convergence in U.S. Cities," Journal of Urban Economics, Elsevier, vol. 38(2), pages 138-165, September.
    9. Michael E. Porter, 2000. "Location, Competition, and Economic Development: Local Clusters in a Global Economy," Economic Development Quarterly, , vol. 14(1), pages 15-34, February.
    10. Sheila A. Martin & Richard McHugh & Stanley R. Johnson, 1991. "Influence of Location on Productivity: Manufacturing Technology in Rural and Urban Areas, The," Center for Agricultural and Rural Development (CARD) Publications 91-wp83, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    11. Paul Krugman, 1998. "Space: The Final Frontier," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 161-174, Spring.
    12. Harold L. Wolman & Coit Cook Ford & Edward Hill, 1994. "Evaluating the Success of Urban Success Stories," Urban Studies, Urban Studies Journal Limited, vol. 31(6), pages 835-850, June.
    13. Barrow, Michael & MikeHall, 1994. "The impact of a large multinational organisation on a small local economy," Discussion Papers in Economics 04/94, Department of Economics, University of Sussex Business School.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Harold (Hal) Wolman & Eric Stokan & Howard Wial, 2015. "Manufacturing Job Loss in U.S. Deindustrialized Regions—Its Consequences and Implications for the Future," Economic Development Quarterly, , vol. 29(2), pages 102-112, May.
    2. Jörn Harfst & Jasmin Sandriester & Wolfgang Fischer, 2021. "Industrial Heritage Tourism as a Driver of Sustainable Development? A Case Study of Steirische Eisenstrasse (Austria)," Sustainability, MDPI, Open Access Journal, vol. 13(7), pages 1-16, March.
    3. Yolanda Kodrzycki & Ana Patricia Munoz, 2013. "Economic distress and resurgence in U.S. central cities: concepts, causes, and policy levers," Public Policy Discussion Paper 13-3, Federal Reserve Bank of Boston.
    4. Diego Barrado-Timón & Antonio Palacios & Carmen Hidalgo-Giralt, 2020. "Medium and Small Cities, Culture and the Economy of Culture. A Review of the Approach to the Case of Spain in Light of International Scientific Scholarship," Sustainability, MDPI, Open Access Journal, vol. 12(18), pages 1-28, September.
    5. Harfst Jörn & Pichler Patrick & Fischer Wolfgang, 2017. "Regional Ambassadors – An Innovative Element for the Development of Rural Areas?," European Countryside, Sciendo, vol. 9(2), pages 359-374, June.
    6. 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.
    7. John Cullinan & Eoghan Garvey & Micheal Keane, 2013. "Investigating the Determinants of Relative Economic Performance for Irish Towns: A Finite Mixture Modelling Approach," Regional Studies, Taylor & Francis Journals, vol. 47(8), pages 1332-1347, September.
    8. Ravi Pendakur & Nathan Young, 2013. "Putting on the moves," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(28), pages 767-796.
    9. David Bell & Mark Jayne, 2009. "Small Cities? Towards a Research Agenda," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(3), pages 683-699, September.
    10. Laura A. Reese & Minting Ye, 2011. "Policy Versus Place Luck: Achieving Local Economic Prosperity," Economic Development Quarterly, , vol. 25(3), pages 221-236, August.
    11. Tarsha EASON & Ahjond S. GARMESTANI, 2012. "Cross-Scale Dynamics Of A Regional Urban System Through Time," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 36, pages 55-77.
    12. Elizabeth Mack & Tony H. Grubesic & Erin Kessler, 2007. "Indices of Industrial Diversity and Regional Economic Composition," Growth and Change, Wiley Blackwell, vol. 38(3), pages 474-509, September.
    13. Laura REESE, 2012. "CREATIVE CLASS OR PROCREATIVE CLASS: IMPLICATIONS FOR LOCAL ECONoMIC DEVELOPMENT POLICY," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 7(1), pages 5-26, February.
    14. Clerici Maria Antonietta, 2020. "Unity in Variety. Employment Dynamics and Specialisation Profiles of Medium-Sized Towns in the Asti-Rovigo Area, Italy (2001–2017)," Quaestiones Geographicae, Sciendo, vol. 39(4), pages 5-22, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. George A. Erickcek & Hannah McKinney, 2006. "“Small Cities Blues:†Looking for Growth Factors in Small and Medium-Sized Cities," Economic Development Quarterly, , vol. 20(3), pages 232-258, August.
    2. Bumsoo Lee & Peter Gordon, 2007. "Urban Spatial Structure and Economic Growth in US Metropolitan Areas," Working Paper 8564, USC Lusk Center for Real Estate.
    3. Yingcheng Li & Kai Zhu, 2017. "Spatial dependence and heterogeneity in the location processes of new high-tech firms in Nanjing, China," Papers in Regional Science, Wiley Blackwell, vol. 96(3), pages 519-535, August.
    4. Yang, Yong, 2012. "Agglomeration density and tourism development in China: An empirical research based on dynamic panel data model," Tourism Management, Elsevier, vol. 33(6), pages 1347-1359.
    5. Suho Bae, 2009. "The responses of manufacturing businesses to geographical differences in electricity prices," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(2), pages 453-472, June.
    6. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    7. Florencia Garcia-Vicente & Daniel Garcia-Swartz & Martin Campbell-Kelly, 2017. "Information technology clusters and regional growth in America, 1970–1980," Small Business Economics, Springer, vol. 48(4), pages 1021-1046, April.
    8. No, Angela, 2008. "Cities and Growth: Knowledge Spillovers in the Adoption of Advanced Manufacturing Technologies," The Canadian Economy in Transition 2008018e, Statistics Canada, Economic Analysis Division.
    9. Robert J. Stimson, 2014. "Proximity and endogenous regional development," Chapters, in: André Torre & Frédéric Wallet (ed.), Regional Development and Proximity Relations, chapter 1, pages 47-93, Edward Elgar Publishing.
    10. Ksenia Gonchar & Philipp Marek, 2013. "Natural-resource or market-seeking FDI in Russia? An empirical study of locational factors affecting the regional distribution of FDI entries," HSE Working papers WP BRP 26/EC/2013, National Research University Higher School of Economics.
    11. Kim, Ho Yeon, 2012. "Shrinking population and the urban hierarchy," IDE Discussion Papers 360, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    12. Belal Fallah & Mark D. Partridge & Dan S. Rickman, 2014. "Geography and High-Tech Employment Growth in US Counties," Journal of Economic Geography, Oxford University Press, vol. 14(4), pages 683-720.
    13. Norman Sedgley & Bruce Elmslie, 2011. "Do We Still Need Cities? Evidence on Rates of Innovation from Count Data Models of Metropolitan Statistical Area Patents," American Journal of Economics and Sociology, Wiley Blackwell, vol. 70(1), pages 86-108, January.
    14. Martin Carree & Emilio Congregado & Antonio Golpe & André van Stel, 2015. "Self-employment and job generation in metropolitan areas, 1969-2009," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 27(3-4), pages 181-201, April.
    15. Pantzalis, Christos & Park, Jung Chul, 2014. "Too close for comfort? Geographic propinquity to political power and stock returns," Journal of Banking & Finance, Elsevier, vol. 48(C), pages 57-78.
    16. Pe'er, Aviad & Vertinsky, Ilan, 2008. "Firm exits as a determinant of new entry: Is there evidence of local creative destruction?," Journal of Business Venturing, Elsevier, vol. 23(3), pages 280-306, May.
    17. Canever, Mario Duarte & Carraro, Andre & Kohls, Volnei Krause & Teles, Morgan Yuri Oliveira, 2010. "Entrepreneurship in the Rio Grande do Sul, Brazil: the determinants and consequences for the municipal development," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 48(1), pages 1-24, March.
    18. Frank Lasch & Frank Robert & Frédéric Roy, 2013. "Regional determinants of ICT new firm formation," Small Business Economics, Springer, vol. 40(3), pages 671-686, April.
    19. Palmberg, Johanna, 2012. "Spatial Concentration in the Financial Industry," Ratio Working Papers 188, The Ratio Institute.
    20. Aviad Pe'er & Ilan Vertinsky & Thomas Keil, 2016. "Growth and survival: The moderating effects of local agglomeration and local market structure," Strategic Management Journal, Wiley Blackwell, vol. 37(3), pages 541-564, March.

    More about this item

    Keywords

    economic; development; growth; factors; erickcek; mckinney; incentives; local; regional; small; medium; cities;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:upj:weupjo:04-100. 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: . General contact details of provider: https://edirc.repec.org/data/upjohus.html .

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (email available below). General contact details of provider: https://edirc.repec.org/data/upjohus.html .

    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.