Urban Development and Knowledge‐Intensive Business Services: Too Many Unanswered Questions?

ABSTRACT It is often assumed that future urban employment will be increasingly dependent on the knowledge‐intensive business services (KIBS). This underpins much of the current thinking about the development of the English “core cites.” Their example is employed to examine the more general validity of such assumptions, in terms of five critical questions to which research offers only partial and indefinite answers. For any city, how far are these activities really “knowledge intensive”? What markets do they serve? Is their future growth certain? And even when this is the case, how can they make a long‐term contribution to local urban economic success? Finally, how far do urban economic institutions and policies need to be adapted to foster knowledge‐based activities such as KIBS? It seems that, despite the growth of measured KIBS employment, most of the core cities possess few truly knowledge‐intensive KIBS, capable of serving national and international business markets, competitively adapting to future change, and adding to the competitiveness of the wider urban economy. Nationally such activities remain focused into the London region where, if anything, they have increased their concentration is recent years.     

Immigrants Doing Business in a Mid‐sized Canadian City: Challenges,Opportunities, and Local Strategies in Kelowna,British Columbia

Lacking a tradition of settling immigrants and the appropriate infrastructure to integrate them, small‐ and medium‐sized cities often face the challenge of attracting and retaining immigrants. Using a mixed methods approach, this study compares the experiences of immigrant and non‐immigrant entrepreneurs in a mid‐sized Canadian city, Kelowna, British Columbia. A survey reveals different experiences between these two groups, with immigrants facing more challenges. In the absence of institutionally complete communities or strong ethnic economies, immigrants do not rely extensively on their own community resources, an element considered instrumental for immigrant business development in large cities. Compared to non‐immigrants, immigrant entrepreneurs have a more optimistic outlook on doing business in Kelowna; this is encouraging for a city trying hard to attract immigrant investment. Key informants recommended transforming the city into a more welcoming community, establishing appropriate support infrastructure, and removing potential institutional offsets. This paper adds new theoretical insights to the literature on immigrant entrepreneurship; all socio‐cultural, political‐institutional, and economic‐structural considerations are embedded in geography. The findings also have implications for growth strategies in small‐ and medium‐sized cities.     

Do Immigrants Respond to Regional Labor Demand Shocks?

The recent economic boom in the Canadian province of Alberta provides an ideal “natural experiment” to examine immigrants' responses to a strong labor demand outside major metropolitan centers. The key finding of this study based on a unique data set that combines administrative and immigrant records is that not only did immigrants respond to the recent economic boom in Alberta, but that their response was generally stronger than the response of nonimmigrants. We also find, however, a great deal of heterogeneity in the magnitude of the response across different regions and for different categories of immigrants.     

The Economic Status of Areas Surrounding Major U.S. Container Ports: Evidence and Policy Issues

ABSTRACT This article examines the current economic status of the areas surrounding major U.S. container ports. We define a “port district” as the geographic area within a 7.5‐mile radius of a port. Our sample includes the 10 largest container ports in the U.S. We find that when we compare port districts to their surrounding metropolitan areas, household unemployment and poverty rates are significantly higher in port districts. Thus, the same ports that serve as “economic engines” for the region and nation may be the cause of economic decline and deterioration in the immediate areas that surround them. This presents a challenge for policy makers who want to preserve the benefits of international trade while facing increasing opposition to port expansion by local communities.     

Rural‐to‐Urban Commuting: Three Degrees of Integration

Commuting ties between rural places of residence and urban places of employment are among the most visible forms of rural–urban integration. For some rural areas, access to urban employment is a key source of population retention and growth. However, this access varies considerably across rural areas, with distance representing a primary deterrent. In addition to distance, the size of the urban community will also influence rural‐to‐urban commuting opportunities. In this paper, using Canadian data, we empirically estimated the influence of local rural population and job growth on rural out‐commuting within the urban hierarchy. We find consistent support for the deconcentration hypothesis where population moves to rural areas for lifestyle and quality of life reasons, while retaining urban employment. Further, we find some evidence that in addition to distance from the nearest urban center being a deterrent, increased remoteness from the top of the urban hierarchy exerts a positive influence on out‐commuting. Recognition of these types of rural–urban linkages through commuting is essential in designing Canadian rural policy and targeted programs that may effectively support local rural populations. In particular, they point to the need to have reasonable transportation infrastructure for urban accessibility, which should be complemented by other “built” infrastructure to improve the livability of rural communities.     

The Quality of Education,Educational Institutions,and Cross‐Country Differences in Human Capital Accumulation

ABSTRACT Cross‐country studies of education and economic prosperity often reach conflicting results when using growth rates as the measure of economic development. However, growth rates lack persistence over time and may not accurately measure long‐term economic success over relatively short economic horizons. To overcome this potential specification problem, we estimate the relationship between key education variables and the capital to physical labor ratio. Using both cross‐sectional and panel specifications, we find that both the primary‐pupil–teacher ratio and decentralized education finance are associated with a larger capital to physical labor ratio. The relationship between human capital and expenditures, private education, and test scores are less robust.     

The Power of Governance in Financial Relationships: Governing Tensions in Exotic Infrastructure Territory

ABSTRACT The scope of financial products has recently extended to include investments in infrastructure assets that were previously community owned. While private investment in infrastructure is not new, the rise of institutional investors searching for infrastructure investments to match long‐term liabilities is a recent phenomenon. Most cannot hire the necessary expertise or take on the relatively large risks that accompany undertaking such endeavors in‐house, with many opting to place capital in specialised infrastructure funds. While there is a plethora of studies on various aspects of public and corporate governance, this paper concentrates on the governance of relationships between institutional investors and their infrastructure fund managers, contributing to the growing body of literature on financial geographies through a focus on the decision‐making of financial actors at the micro level, where the origins and destination of capital into geographies are determined. This private governance is defined as the “regulation” by private agents, insofar as they must anticipate and deal with potential or inherent conflicts of interest. Even as the “embedded” argument stresses the role of concrete personal relations and networks in generating trust, when interests need to be safeguarded in new and unfamiliar settings such as in infrastructure equity investing, the scope of private governance plays a central role in creating the financial relationship. This is supported through a discussion of four problems in private infrastructure governance, which are affected by but also have an impact upon the development of trust and long‐term relationships. Despite differing constraints and various degrees of negotiating leverage, innovative economic action is structured through anticipating and aligning diverging interests of (new) social relations.     

Income Migration and Income Convergence across U.S. States, 1995–2010

In this paper we examine how internal migration redistributes earned income across U.S. states between 1995 and 2010. We examine interregional income flows by first describing the movement of earned income between U.S. states. Second, we examine the effect of income migration on spatial patterns of income inequality. The question we ask is, “does migration increase or decrease convergence income across U.S. States?” A primary contribution of this paper is that instead of using only 1 year of income migration data to explore these issues, we use yearly data from the first year the Internal Revenue Service (IRS) data started including income (1995/1996) up to the most current data available (2009/2010). Results indicate that income convergence/divergence across states varies by whether or not there is general economic expansion or contraction. Nevertheless, some high‐amenity states continually attract high‐income households.     

The Dynamic Effects of Entrepreneurship on Regional Economic Growth: Evidence from Canada

Facilitating entrepreneurship to address regional income disparity continues to be a major concern of policy makers across the globe. This study explores the temporal pattern of income disparity for Canadian provinces in two estimation steps. First, an econometric growth regression model is applied to identify the impact of entrepreneurship on regional economic growth. The estimation results suggest that entrepreneurship, measured in terms of the self‐employment rate, plays a pivotal role in determining regional development in Canada. Second, a dynamic vector autoregression model is employed to simulate long‐run regional growth effects that result from policy shocks affecting entrepreneurship. Compared to other growth drivers, entrepreneurship is found to have more pronounced and long‐term stimulative effects on regional development for the period of 1987–2007.     

Density,Distance, and Division: Rural Poverty in a Developing‐Country Context

The 3Ds, namely, density, distance, and division, are important for regional economic development and are integrated into a “3D” analytical framework in the 2009 World Development Report. Few empirical studies have examined the relevance of the 3D framework for explaining rural poverty in a developing‐country context. The effects of density on poverty are seldom studied, and distances to different layers of city centers on poverty may vary across different contexts. This paper aims to fill these gaps. Examining the case of Guizhou Province in China and adopting methods of the ordinary least square, instrument variable, and spatial econometrics, we find the evidence of the 3D framework for explaining rural poverty at the county level. Population density has a negative effect on rural poverty, while division, as measured by share of the ethnic minority population, has a positive effect. The effects of distance are mixed. Distance to Guiyang, which is the provincial political‐economic center of Guizhou province, has a negative effect on rural poverty, whereas distance to the local city center has no effect. These results can provide important policy implications for local poverty‐alleviation.     

Drought responses of above‐ground and below‐ground characteristics in warm‐season turfgrass

Water shortages have become more chronic as periodic droughts prolong and water demand for urban and agricultural use increases. Plant drought responses involve coordinated mechanisms in both above‐ and below‐ground systems, yet most studies lack comparisons of root and canopy responses under water scarcity and recovery. This is particularly true of research focused on warm‐season turfgrasses in sandy soils with extremely low water holding capacity. To address the lack of examination of coordinated stress and recovery responses, this study compared the above‐ and below‐ground plant responses during a dry‐down period of 21 days and recovery among four warm‐season turfgrass species in the field. Canopy drought responses and recovery were quantified using digital image analysis. In situ root images were captured using a minirhizotron camera system. Common bermudagrass [Cynodon dactylon (L.) Pers.] endured the entire drought period without losing 50% green cover while other species lost 50% green cover in 11–34 days predicted from the regression. The interspecific differences in drought resistance were mainly due to root characteristics. Other drought mechanisms appear to be responsible for differences identified in drought resistance between “Zeon” and “Taccoa Green” manilagrass [Zoysia matrella (L.) Merr.]. Recovery was delayed for up to 2 weeks in the second year, warranting further evaluation for turfgrass persistence under long‐term drought. Three‐week drought posed no threat to the survival of zoysiagrass. Species and genotypic variations were found in achieving full post‐recovery, which can be used to develop water conservation strategies and to adjust consumer expectations.     

Natural Amenities and Rural Development: Understanding Spatial and Distributional Attributes

ABSTRACT Contemporary resource management practice and rural development planning increasingly emphasize the integration of resource extractive industries with non‐market‐based recreational and amenity values. There is a growing empirical literature which suggests that natural amenities impact regional economies through aggregate measures of economic performance such as population, income, and/or employment growth, and housing development. We maintain that assessing the developmental aspects of amenity‐led regional change requires a more thorough focus on alternative measures of economic performance such as income distribution and spatial organization. In the applied research presented here we investigate relationships between amenities and regional economic development indicators. Results suggest mixed and generally insignificant amenity‐based associations which highlight the need for appropriate regional economic modeling techniques that account for often dramatic spatial autocorrelation of natural amenity attributes. We conclude that with respect to amenity driven economic growth and development “place in space” matters.     

Short‐Run Dynamics of Income Disparities and Regional Cycle Synchronization in the U.S.

Since the 1990s, the issue of regional income convergence and its long‐term tendencies has been thoroughly and heatedly discussed. Much less attention, however, has been devoted to the short‐run dynamics of regional convergence. In particular, three important aspects have not yet been adequately addressed. First, it is indeed essential to understand whether regional disparities manifest a tendency to move systematically along the national cycle. Then, if this happens to be the case, it becomes crucial to know whether 1) these movements are pro‐ or counter‐cyclical,2) the cyclical evolution of the disparities is a consequence of differences in the timing with which the business cycle is felt in regions or it is motivated by the amplitude differences across local cyclical swings. In this paper, we shed light on these issues using data on personal income for the 48 coterminous U.S. states between 1969 and 2008. Our results indicate that income disparities do not move randomly in the short run but follow a distinct cyclical pattern, moving either pro‐ or counter‐cyclically depending on the period of analysis. These patterns are probably explained by the changes in the direction of capital and labor flows that favor developed or poorer states in different periods. As for the underlying mechanism, it appears that the short‐run evolution of the disparities in recent years is largely a consequence of differences in the timing with which the business cycle is felt across states rather than the outcome of amplitude differences across local cyclical swings.     

Community College Growth Opportunities: Untapped Potential in America's Heartland?

ABSTRACT Over 1,100 two‐year public institutions have been established in the U.S. which enroll almost two‐fifths of all students in postsecondary education. However, some parts of the country may not be adequately served by these educational institutions despite demand and supply indicators that indicate future growth potential in the sub‐baccalaureate educational market. This paper examines the geographical, demographic, and economic characteristics of counties that host community colleges. It finds that community college access is uneven. A multiple regression analysis reveals several correlates with community college location and identifies counties where opportunities may exist to “seed” additional community colleges.     

Linking Policy and Outcomes: A Simulation Model of Poverty Incidence

ABSTRACT Many states are striving to meet public demand for accountability by “benchmarking”—setting social goals for the state and tracking progress in meeting the goals. However, states are finding it difficult to set realistic targets and to assess the impacts of policy on achievement of the targets without a framework that models the relationships among policy targets, policy actions and social and economic forces outside the control of policymakers. This paper develops a dynamic simulation model of one “benchmark” (poverty incidence) in Oregon, linking transitions into and out of poverty to various events (increased earnings, or having a child as a teenager, for example), and linking these events to policy. The simulation results suggest that, with current policies, Oregon will come close to achieving its poverty benchmark target of 11 percent by the year 2000 if economic conditions remain favorable. The model is used to examine the impact on poverty incidence of three policy strategies: reducing high school dropout and teen pregnancy rates, increasing the effectiveness of social support programs to JOBS participants, and boosting job growth. The simulation results suggest that when assessing the state's performance or “grading” the observed trend in the poverty benchmark, policymakers should take into account the performance of the state (and national) economy. The impact of policy efforts to reduce poverty is limited because many poverty spells are caused largely by events not affected by current state policies.     

‘Pasifika’ and ‘I‐Kiribati’ identity in Aotearoa New Zealand: ‘Dancing’ and ‘edge‐walking’ through multiple identities

This article explores the relationship between I‐Kiribati communities and the broader ‘imagined’ Pasifika community in Aotearoa New Zealand. It looks at the way a group of I‐Kiribati tertiary students experience identity within this context. Through the use of semi‐structured interviews and a discourse analysis, the study draws three main conclusions. First, that I‐Kiribati navigate multiple identities and are constantly negotiating these within different spaces. Although this contributes to uncertainties around identity, I‐Kiribati students also strategically enact identity to suit various contexts. Second, that Pasifika as a term tends to infer ‘Polynesian’ which in turn may marginalise I‐Kiribati identities within certain spaces, particularly in education settings that intend to support all Pacific identities. Yet, given such a narrow understanding of Pasifika, these efforts may counter that intention for those on the margins of, or outside the common usage of, the term Pasifika. Last, community plays a significant role in the formation of identities within minority groups, which is important for countering aspects of marginalisation experienced within broader pan‐ethnic labels such as Pasifika. Consequently, we argue that Pasifika as a label needs to better reflect inter‐Pacific diversity as well as the identity negotiations that Aotearoa New Zealand‐born Pacific peoples navigate.     

Poverty and Local Governments: Economic Development and Community Service Provision in an Era of Decentralization

Social scientists have given substantial attention to poverty across U.S. localities. However, most work views localities through the lens of population aggregates, not as units of government. Few poverty researchers question whether governments of poorer localities have the capacity to engage in economic development and service activities that might improve community well‐being. This issue is increasingly important as responsibilities for growth and redistribution are decentralized to local governments that vary dramatically in resources. Do poorer communities have less activist local governments? Are they more likely to be engaged in a race to the bottom, focusing on business attraction activities but neglecting services for families and working people? We bring together two distinct literatures, critical research on decentralization and research on local development efforts, that provide contrasting views about the penalty of poverty. Data are from a unique, national survey of county governments measuring activity across two time points. The most consistent determinants of activity are local government capacity, devolutionary pressures, and inertia or past use of strategies. Net of these factors, levels and changes in poverty do not significantly impact government activity. There is no evidence the nations' poorest counties are racing to the bottom. Findings challenge views that poverty is a systematic structural barrier to pursuing innovative economic development policies and suggest that even poorer communities can take steps to build local capacity, resources, and networks that expand programs for local businesses and low‐wage people.     

Determinants of the Travel Behavior of the Suburban Elderly

In recent years, a significant feature of population change in North American metropolitan areas has been the rapid suburbanization of elderly people. The ability to engage in routine activity may be a necessary condition for the maintenance of independent life styles and psychological well‐being among older suburbanites. Using a conceptual framework based on Parmelee and Lawton's ecological model of aging, this article offers an exploratory investigation of the determinants of the travel of separate samples of elderly male and female suburbanites to each of five destination categories of key service/activity sites in a Canadian city. The results of the tests of ten multiple regression models disclose that the levels of explanation of trip frequency afforded by “autonomy components” (e.g. health‐related characteristics, living arrangements, and income level) vary according to destination category. However, the explanatory power of “security components” (i.e. variables concerning access to destination categories) is generally low. Overall, the findings of the study provide a basis for developing a deeper understanding of the repetitive travel behavior of elderly suburbanites.     

Why Is U.S. Poverty Higher in Nonmetropolitan than in Metropolitan Areas?

ABSTRACT In the U.S., people are more likely to be poor if they live in a nonmetropolitan (nonmetro) than in a metropolitan (metro) area. A common explanation for this phenomenon is that nonmetro places offer relatively few economic and social opportunities. This article explores another plausible explanation, asking if the disproportionate poverty in nonmetro areas partly reflects attitudes of people with personal attributes related to poverty: they may be attracted to nonmetro places or otherwise reluctant (or unable) to leave them. To test this hypothesis, data from nine waves of the Panel Study of Income Dynamics (PSID) are used to track economic well‐being and nonmetro–metro residential choice among a sample of 2,007 low‐income householders. A series of multivariate regression models are estimated in which the dependent variable is a householder's income to need (adjusted for spatial cost‐of‐housing differences), and regressors are individual attributes, a binary variable for nonmetro residence, and state fixed‐effects. Regression results show that controlling for householder educational attainment reduces the negative association between nonmetro residence and income to need; but controlling for unobserved, time‐invariant heterogeneity via individual fixed‐effects increases the magnitude of this negative association. Study findings thus appear to indicate that enduring nonmetro poverty is explained both by a sorting of low human capital individuals into nonmetro areas and by reduced economic opportunities in nonmetro compared to metro places.     

Participatory natural resource management in rural China: Making and unmaking environmental narratives

Environmental and development discourses in China can be categorised into three narrative motifs framing human–nature relationships: peasant, indigenous, and community. Indigenous and community narratives have been widely adopted by environmental NGOs (eNGOs) in China in promoting community‐based natural resource management projects, but there has been very limited critical research on such phenomena. Analysis of socio‐economic change in two ethnic minority communities in Yunnan shows that neither narrative theme is fully internalised by the relevant communities. Instead narratives may be strategically modified or even rejected by local communities. This is due to different agendas being held by local communities and eNGOs, and two factors pertinent to rural China: the incompatibility of concepts of ‘community’ in Chinese and international contexts results in confusion, and a lack of recent territorial and cultural claims by rural communities since the collectivist era makes it difficult to construct the identity of a community. It remains challenging for eNGOs in China to advocate either community or indigenous narratives in contexts of rapid socio‐economic change.