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New study finds fastest-growing cities not the most prosperous

2012-07-20
(Press-News.org) Los Angeles, CA (July 19, 2012) As communities seek new ways to emerge from the recession, many may look to growing their population as a strategy. However, the belief that population growth will bring jobs and economic prosperity for local residents is a myth. These findings are published in a new study in the latest issue of Economic Development Quarterly (published by SAGE).

"Growth may be associated with economic development success; however, it is not the cause of that success," wrote study author Eben Fodor.

Fodor examined the relationship between growth and economic prosperity in the 100 largest U.S. metropolitan areas from 2000 to 2009 to determine whether certain benefits commonly attributed to growth are supported by statistical data. He found that the slowest-growing metro areas had lower unemployment rates, lower poverty rates, higher income levels, and were less impacted by the recession than the fastest-growing areas. In fact, in 2009, local residents of slower-growing areas averaged $8,455 more per capita in personal income than those of the fastest-growing areas.

"The successful economic development program is typically the one that creates new jobs," Fodor wrote. "The new jobs tend to stimulate population growth as people move into the area seeking to take advantage of the new employment opportunities … But growth is not creating employment opportunities. Instead it is reducing them as newcomers fill job openings."

This new study used information taken from the U.S. Census to study 100 of the largest metro areas, representing 66% of the total U.S. population. It concluded with a comparison of the 25 slowest-growing metro areas with the 25 fastest growing from 2000 to 2009. The slowest growing areas were located in 13 different states, including Connecticut, New York, and Ohio while the fastest-growing areas came from 12 different states, dominated by California, Florida, and Texas.

INFORMATION:

A full copy of the study "Relationship between Growth and Prosperity in 100 Largest U.S. Metropolitan Areas" in Economic Development Quarterly, is available free for a limited time at:

Economic Development Quarterly (EDQ), is the one journal that effectively bridges the gap between academics, policy makers, and practitioners and links the various economic development communities. Although geared to North American economic development and revitalization, international perspectives are welcome and encouraged. Featuring timely, relevant, and practical essays, EDQ presents today's most pivotal issues and details the programs and policies affecting development at every level. http://edq.sagepub.com/

Impact Factor: 1.059
Ranked: 14 out of 36 in Urban Studies,25 out of 47 in Planning & Development and 101 out of 304 in Economics
Source: 2010 Journal Citation Reports® (Thomson Reuters, 2011)

SAGE is a leading international publisher of journals, books, and electronic media for academic, educational, and professional markets. Since 1965, SAGE has helped inform and educate a global community of scholars, practitioners, researchers, and students spanning a wide range of subject areas including business, humanities, social sciences, and science, technology, and medicine. An independent company, SAGE has principal offices in Los Angeles, London, New Delhi, Singapore and Washington DC. www.sagepublications.com

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[Press-News.org] New study finds fastest-growing cities not the most prosperous