This document discusses local economic development. It introduces economic base theory, which holds that basic firms export goods and services, bringing new money into the local economy and supporting additional nonbasic jobs through multiplier effects. The document outlines different sectors of the economy and different approaches to economic development, from industrial attraction to nurturing entrepreneurs to developing industrial clusters. It also discusses more recent ideas around sustainable economic development and measuring well-being.

1. http://www.theadp.com/economic-development/
Introduction to local economic development
© Mark M. Miller
World Regional Geography
Dept. of Geography & Geology
The University of Southern Mississippi
https://www.youtube.com/watch?v=JVL24i38F
2s

3. How do we create more jobs and better jobs in local communities?

4. “Jobs to people” vs. “People to jobs”

5. Theories
•Market failure theory
•Economic base theory

6. Economic base theory
•Basic firms
•Nonbasic firms
•Multiplier
•Leakage

7. Economic base theory
100 basic jobs
x multiplier (say, 1.8)
= 180 total jobs (including 80 nonbasic jobs)

8. Economic base theory
Loss of 100 basic jobs
x multiplier (say, 1.8)
= loss of 180 total jobs (including 80 nonbasic
jobs)

9. Sectors of the economy
• Quaternary sector
• Tertiary sector
• Secondary sector
• Primary sector

10. Sectors of the economy:
• Quaternary sector
• Tertiary sector
• Secondary sector
• Primary sector
Mississippi Dept. of Agriculture & Commerce. Retrieved February 8, 2017:
https://www.mdac.ms.gov/bureaus-departments/market-development/

11. Sectors of the economy:
• Quaternary sector
• Tertiary sector
• Secondary sector
• Primary sector
Toyota. 500,000th Corolla Speeds Off the Line at Toyota Mississippi / Blue Springs plant
celebrates milestone achieved at record pace. February 12, 2015:
http://toyotanews.pressroom.toyota.com/releases/toyota+500k+corolla+line+off+tmmms.htm

12. How many workers
(American or otherwise)
do you see in this picture?
Toyota. 500,000th Corolla Speeds Off the Line at Toyota Mississippi / Blue Springs plant
celebrates milestone achieved at record pace. February 12, 2015:
http://toyotanews.pressroom.toyota.com/releases/toyota+500k+corolla+line+off+tmmms.htm

13. Sectors of the economy:
• Quaternary sector
• Tertiary sector
• Secondary sector
• Primary sector

14. Sectors of the economy:
• Quaternary sector
• Tertiary sector
• Secondary sector
• Primary sector
MacWorld. Complete guide to Apple Campus 2 | Everything we know about Apple's new spaceship HQ. January 31, 2017:
http://www.macworld.co.uk/feature/apple/52-facts-about-apples-spaceship-campus-february-drone-video-3489704/

15. A.C.R.E.
•Retention
•Expansion
•Creation
•Attraction

16. First approach, or “First
Wave”:
Industrial attraction &
incentives
model
Mississippi Historical Society. Mississippi
History Now. Retrieved 9/27/05:
http://mshistory.k12.ms.us/features/feature52
/economic.htm

17. Mississippi’s 1936 “Balance
Agriculture with Industry” Act
Mississippi Historical Society. Mississippi History Now. Retrieved
9/27/05: http://mshistory.k12.ms.us/features/feature52/economic.htm

18. “Smokestack chasing”?
Nissan Canton. Retrieved Sep 10, 2013: http://www.nissan-canton.com

19. Second approach, or
“second wave”:
nurture local
entrepreneurs
- Venture capital
- Incubators

20. Grameen Bank America. Retrieved September 9, 2013: http://grameenamerica.org

21. “Third wave”: the greater economic environment
Michael Porter’s industrial cluster:
Porter, Michael. 2000. Location, competition, & Economic Development. Economic Development Quarterly (p. 20)

22. Silicon Valley
Retrieved 9/27/05: http://www.wwwebport.com/citygates/sv/svfullview.html

23. San Diego Biocluster
University of California San Diego CONNECT. Retrieved 9/27/05: http://www.connect.org/

24. “Mississippi gambling cluster”?
Las Vegas Review-Journal. Retrieved 9/27/05: http://www.reviewjournal.com/lvrj_home/2001/Mar-28-Wed-2001/business/15720215.html

25. Salon.com. 5/1/07:
http://dir.salon.com/story/books/int/2002/06/06/florida/index.html?x

26. Tourism

27. Les Rowntree; Martin Lewis; Marie Price; William Wyckoff.
2008.. Globalization and Diversity: Geography of a
Changing World, Third Edition.

28. Retrieved September 5, 2012:
http://www.treehugger.com/corporate-responsibility/worlds-
largest-solar-tower-now-powers-10000-homes.html
A “fourth wave”:
Sustainable
economic
development

29. Social capital
• Bonding capital
• Bridging capital
• Linking capital

30. “Happiness”
• Richard Layard. 2005. Happiness: Lessons From a New Science.
Penguin Press.
• Bhutan’s “Gross National Happiness” index
Revkin, Andrew. 2005. A new measure of well-being from a happy little kingdom. New York Times.
Retrieved 10/5/05:
http://www.nytimes.com/2005/10/04/science/04happ.html?ex=1129089600&en=de859301f49c121d&ei
=5070&emc=eta1
New models?
A fresh theoretical perspective?

31. Diener, E and Seligman M.E.P. 2004. “Beyond Money: Toward
and Economy of Well Being.” Psychological Science in the
Public Interest 5(1), 1-30.

32. Diener, E and Seligman M.E.P.
2004. “Beyond Money: Toward
and Economy of Well Being.”
Psychological Science in the
Public Interest 5(1), 1-30.

33. Diener, E and Seligman M.E.P.
2004. “Beyond Money: Toward
and Economy of Well Being.”
Psychological Science in the
Public Interest 5(1), 1-30.

34. Economic development cutting edge?
Growing income inequality?
Wills, Matthew. 2014. The road to capital in the 21 Century. JSTOR Daily. August 1:
http://daily.jstor.org/the-road-to-capital-in-the-twenty-first-century/