Regional Economic Development

Course Description:

The goal of this course is to explore the patterns of economic development at the regional level, gain an understanding of the forces that affect development (e.g., technological change, migration, industrialization, urbanization, capital flight etc.) and examine the role that business, government, and the non-profit sector play in addressing those forces.

Although we will focus principally on the New England economy, there will be an opportunity to examine case studies of development in Asia, Latin America and the United States. There will be both a theoretical component to the course that draws upon economics, sociology, geography and anthropology, as well as an empirical component that will focus on the data of development studies.

Some of the questions we will ask are: Why do businesses relocate? What factors determine family and individual decisions to settle in a particular area? Why are some economies much more stable than others? How important is “place” (location, climate, terrain) in the success of a regional economy? How important is “community” (character of local culture, association, kinship)? How important is the socio-economic type (agrarian subsistence, urban capitalist, suburban/exurban bedroom community)?

Course Objectives:

The objectives of the course are 1) to provide an introduction to the competing concepts, ideologies and methodologies that are used to describe the process of economic development; 2) to develop an understanding of the interactions of the state, business and labor in the formation of regional development strategies; 3) to examine the most recent issues and trends in the development field; 4) to reflect on the relationship between the goals of capitalist development and the interests of society; 5) to explore the effects of globalization on regional development potential.

Requirements:

Required Texts: Ann Markusen. 1999. Second Tier Cities: Rapid Growth beyond the Metropolis.

Matthew Edel. 1992. Urban and Regional Economics: Marxist Perspectives.

Other Readings: All articles, book chapters and newspaper articles in the assigned readings will either be handed out, on library reserve or both. Two copies of each reading will be on reserve in separate volumes.

The class time in this course will principally consist of brief lectures and informed discussion by students. As a consequence, students absolutely must complete the assigned readings prior to each class -- it is suggested that each student take brief summary notes including comments and questions on each reading and bring the books and articles to class to facilitate discussion. Participation counts 20 percent of the course grade. If you are absent you cannot participate and that will affect your grade.

Grading:

Two exercises 10%

Participation 20%

Take-home midterm 20%

Take-home final exam 25%

Regional history paper 25%....(a separate hand-out will explain this project)

Note: I encourage students working together and handing their papers and exercises to others for proofreading, but all work must be your own. Any ideas not your own (whether published or not) must be attributed to their authors and properly cited in your submissions. The preferred method of citation (for more unusual material -- data, telephone conversations, e-mail, websites et al -- see the copy of Hackers, A writer's Reference on library reserve for this course) is the following:

Manufacturers fought the eight hour day, often insisting that mandatory overtime was essential if workers were to pay for the college educations that would advance their careers (Linder, 2000: 29).

Then include in the reference section at the end of the paper:

Marc Linder. 2002. Moments are the Elements of Profit. Iowa City: Fanpihua Press.

Week 1 (January 20): Definitions, Methodological Considerations and Problems

Readings: Edel (1-18); Markusen (3-17); Ferguson & Dickens (175-184 -- Handout & library reserve)

Week 2 (January 27): Growth and Location of Industry: General Considerations

Schuh and Triest. "The Evolution of Regional Manufacturing Employment: Gross Job Flows within and between Firms and Industries," New England Economic Review, (third quarter, 2002). Available online at http://www.bos.frb.org/economic/neer/neer2002/neer302c.pdf.

Dublin, Thomas. Lowell: The Story of an Industrial City. 1992. United States National Park Service. Handbook No. 140. (Handout & Lib. Reserve).

Week 3 (February 3): How to Study Local Economic Development -- Contending Approaches

Why do certain economic activities concentrate geographically? What is responsible for one region or city growing while another is dying? Why do some regions have only low-wage jobs, high unemployment and crumbling infrastructure? What constitutes the explanation of the processes at work in determining the particular economic fate of a region?

Fujita & Thisse, Economics of Agglomeration. Chapter 1 (handout and lib. reserve)

Gittell & Thompson "Inner-City Business Development and Entrepreneurship: New Frontiers for Policy and Research" Chapter 11 in Urban Problems and Community Development by Ronald Ferguson and Wm. Dickens, eds.

Week 4 (February 10): Free Market Ideology vs. Socioeconomic Approaches to Development

A short reminiscence of the theory of profit-maximization and a comparison with a more collectivist approach to development.

Malizia and Feser, "Regional Growth Theory," Chapter 6 in Understanding Local Economic Development, pp. 123-149.

Dreze and Sen. India: Development and Participation. Chapter 2. "Economic Development and Social Opportunity."

Week 5 (February 17): The Structures of Accumulation: Second Tier Cities, Industrial Policy and Uneven Development

Spatial relations in the location decisions of firms and the success of regional alliances in new industrial districts. How has the logic of capitalist development affected city growth and decline? How have the decisions by firms determined capital-labor relations, the control of production and the health of communities?

Week 6 (February 24): The Social Contract, Local Institutions and the Mobility of Capital

How can communities and regions protect themselves against the threat of capital flight? Do local institutions serve business at the expense of the long term interests of their residents?

Robert D. Putnam, "The Prosperous Community: Social Capital and Public Life," The American Prospect, Spring 1993.

Susan Christopherson, "Why do National Labor Market Practices Continue to Diverge in the Global Economy? The Missing Link of Investment Rules." Economic Geography Vol. 78, No. 1, January 2002, pp 1-20.

Michael E. Porter, "The Competitive Advantage of the Inner City," Harvard Business Review (May/June 1995) :55-71.

Merrill Goozner, "The Porter Prescription," The American Prospect (May/June 1998): 56-64.

Week 12 (April 20): Policy Decisions and Technology: The Future of the Work Space

Joel Kotkin, "The Declustering of America." Wall Street Journal, 8/15/02, A12.

Robert Forrant and Erin Flynn, "Seizing agglomeration's potential: the Greater Springfield Massachusetts metalworking sector in transition, 1986-1996. Regional Studies v. 32, n. 3, 1998.

William Tabb, "Globalization is an issue, the power of capital is the issue," Monthly Review, v. 49, n. 2, 1997: 20-30.