Sustaining Arts and Culture in Buffalo Niagara

Like all nonprofits, arts and culture organizations are not immune to the inevitable shifts in fiscal health due to trends in the region’s economy and in charitable giving. In recent years, however, the shifts have turned sharply downward due to budget crises for one of the industry’s most important supporters – local government. With cherished arts and cultural assets in Erie and Niagara Counties struggling to make ends meet, the region is suddenly forced to confront a series of provocative questions. With increasingly limited resources, how can the region sustain an industry integral to Buffalo Niagara’s economy and quality of life? Can the region fill this gap while providing a higher degree of funding predictability? If not, how will it be determined which organizations are left to falter? If so, whose responsibility is it to bridge the fiscal chasm – the public sector, the private sector, the cultural institutions themselves, or all of the above

Knowledge-based industry and regional growth

One of the most important but less understood phenomena in the beginning of the 21st century has been a shift toward knowledge-based economic activity in the comparative advantage of modern industrialized countries. Two broad trends has been observed in the global economy. That is, the output from the world's science and technology system has been growing rapidly and the nature of investment has been changed (MILLER, 1996). The relative proportions of physical and intangible investment have changed considerably with the relative increase of intangible investments since the 1980s. In addition, there has been increased complementarity between physical and intangible investments and more important role of high technology in both kinds of investment (MILLER, 1996). Even in the newly industrialized countries, the growth of technology intensive industries, the increase of R&D activities and the growth of the knowledge intensive producer services have been common feature in recent years. In this change of the structure of productive assets, the role of knowledge is well recognized as the most fundamental resources in recent years (OECD, 1996; WORLD BANK, 1998). The development of information and communication technology (ICT) and globalisation trend have promoted this shift toward knowledge-based economy

Natural resources and regional growth

Regional economics ; Natural resources

A network-based view of regional growth

The need to better understand the mechanisms underlying regional growth patterns is widely recognised. This paper argues that regional growth is partly a function of the value created through inter-organisational flows of knowledge within and across regions. It is proposed that investment in calculative networks by organisations to access knowledge is a form of capital, termed network capital, which should be incorporated into regional growth models. The paper seeks to develop a framework to capture the value of network capital within these models based on the spatial configuration and the nature of the knowledge flowing through networks

Regional growth in worker quality

Labor productivity ; Human capital

Is Income Inequality Endogenous in Regional Growth?

This study focuses on testing the relationship between income inequality and growth within U.S. counties, and the channels through which such effects are observed. The study tests three hypotheses: (1) income inequality has an inverse relationship with growth; (2) regional growth adjustments are the channels through which the inequality and growth are equilibrated; and (3) income inequality is endogenous to regional growth and its adjustment. Results, based on a system of equations estimation, confirm the hypotheses that income inequality has a growth dampening effect; income inequality is endogenous to regional growth and growth adjustment; and the channels through which income inequality determines growth are regional growth adjustments, such as migration and regional adjustment in job and income growth. Results have numerous policy implications: (1) to the extent that income inequality is endogenous, its equilibrium level can be internally determined within a regional growth process; (2) to the extent that traditional income inequality mitigating policies have indirect effect on overall regional growth, they may have unintended indirect effects on income inequality; and (3) to the extent that regional growth adjustment also equilibrates income inequality, such forces can be utilized as policy instruments to mitigate income inequality, and its growth dampening effects hence forth.Income inequality, economic growth, Gini coefficient, growth modeling, population change, per capita income, Community/Rural/Urban Development, Public Economics, I32, J15, O18, P25, R11, R23, R25, R51, R53, R58,

Railroads and micro-regional growth in Prussia

We study the effect of railroad access on urban population growth. Using GIS techniques, we match triennial population data for roughly 1000 cities in nineteenth-century Prussia to georeferenced maps of the German railroad network. We find positive short- and long-term effects of having a station on urban growth for different periods during 1840-1871. Causal effects of (potentially endogenous) railroad access on city growth are identified using instrumentalvariable and xed-effects estimation techniques. Our instrument identifies exogenous variation in railroad access by constructing straight-line corridors between terminal stations. Counterfactual models using pre-railroad growth yield no evidence in support of the hypothesis that railroads appeared as a consequence of a previous growth spurt

Modelling tax decentralisation and regional growth

The aim of this paper is to determine a theoretical linkage between tax decentralisation and regional growth. For this purpose a two fiscal tiers growth model is specified. First, working on Zou (1996) analytical framework, which account for the potential effects of intergovernmental policies on regional growth, a tax decentralisation process is brought in. Next its original model is expanded taking into account such process. It is shown that the effect of tax decentralisation on regional growth depends on the existing relationship between private and regional public capital productivities ratio and their stocks ratio square root. Finally a hypothesis for the Spanish economy is obtained. It will be checked empirically in subsequent work. Keywords: tax decentralisation; general equilibrium analysis; regional growth JEL classification: H70; O40; R13

Integration, Regional Specialization and Growth Differentials in EU Acceding Countries: Evidence from Hungary

This paper investigates the impact of market integration on regional production structures and regional growth differentials in Hungary over the period 1994-2000. Our analysis indicates a relocation of manufacturing towards border regions, in particular towards regions bordering the European Union. On average, regional manufacturing specialization increased. We find a positive relationship between knowledge spillovers proxyed with a measure of foreign direct investment intensity and regional growth as well as between regional manufacturing specialization and regional growth. The change in regional specialization is also positively related to regional growth. Our empirical results show that on average, other things equal, high growth rates are associated with high initial levels of GDP per capita. This finding shows up even when controlling for regional economic structures, change in manufacturing specialization, the degree of openness and geographical proximity to western markets. Our research suggests that in the first stage of market integration divergence forces tend to prevail leading to relative winners and losers across space. Key words: Economic integration, Location of economic activity, Regional growth JEL Classification: F15, R11, R12

Developing Typologies of City-Regional Growth

The economic performance of city-regions is closely linked to the performance of the national economy. However, the performance of the national economy can also depend on the performance of one or more major city-regions, that act as growth poles. Because of their sectoral structure and other characteristics, some cities are better equipped to become growth poles than others. This paper studies 46 major city-regions across Europe. The sectoral structure and changes in the sectoral structure of city-regions are studied using data from CE’s European Regional Database, itself based on Eurostat’s Regio database. The data analysis attempts to explain city-region performance by drawing parallels between sectoral structure and economic performance. The data analysis is supplemented by local anecdotal evidence provided by CE’s annual European reporting system ‘European Regional Prospects’, for example the historical importance of river and seafront activities. The paper goes on to discuss the extent to which the sectoral structure of cities can explain why some city-regions grow faster than others. The data analysis will be used to group cities in ‘hard’ typologies according to sectoral specialisation. These sectoral typologies are then compared with typologies according to the local, ‘softer’, evidence provided by CE’s regional consultants. This evidence will also be used to draw out the more subtle influences on city-region growth and these will be used to group cities in ‘soft’ typologies.