Reinvigorating Springfield’s Economy: Lessons from Resurgent Cities

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. As part of the Federal Reserve Bank of Boston's commitment to supporting efforts to revitalize the economy of Springfield, Massachusetts, this paper analyzes the economic development approaches of other mid-sized manufacturing-oriented cities during the past half century. From among a comparison group of 25 municipalities that were similar to Springfield in 1960, the study identifies 10 "resurgent cities" that have made substantial progress in improving living standards for their residents, and that are recognized as vital communities in a broader sense by experts on urban economic development and policy. These case studies suggest that industry mix, demographic composition, and geographic position are not the key factors distinguishing the resurgent cities from Springfield. Instead, the most important lessons from the resurgent cities concern leadership and collaboration. Initial leadership in these cities came from a variety of key institutions and individuals. In some cases, the turnaround started with efforts on the part of the public sector, while in other cases nongovernmental institutions or private developers were at the forefront. Regardless of who initiated the turnaround, economic redevelopment efforts spanned decades and involved collaborations among numerous organizations and sectors. (1) population of at least 50,000 and primary city in metropolitan area; (2) population equal to at least 50 percent of the population of the primary city in the metropolitan area; and (3) population of at least 150,000. The 65 "weak market" cities, which include Springfield, were those that fared poorly in terms of economic growth during the 1990s (measured by employment, payroll, and 2 Terms of use: Documents in EconStor may JEL Classifications: R0, N0The research strongly suggests that industry mix, demographic composition, and geographic location are not the key factors distinguishing the resurgent cities from Springfield.Therefore, the erosion of Springfield's economic position relative to its peer cities has been due mostly to other factors. Identifying these other factors and taking the appropriate actions is likely to increase Springfield's chances of reaching its economic potential.The most important lessons from the resurgent cities concern leadership and collaboration. Initial leadership in these cities came from a variety of key institutions and individuals. In some cases, the turnaround started with efforts on the part of the public sector, while in...

Economic Distress and Resurgence in U.S. Central Cities

“…Confirming the findings of others, Kodrzycki and Muñoz (2009b) found that having an especially large share of resident employment in manufacturing as of 1960 reduced the likelihood of resurgence. However, the current differences in manufacturing intensity and broader measures of industry mix between the resurgent and the nonresurgent cities were minimal.…”

“…Using case studies to detect commonalities among the resurgent cities, Kodrzycki and Muñoz (2009b) essentially concurred with the conclusions summarized in Wolman et al (2008). They found that the resurgent cities shared the following characteristics: leadership on the part of key institutions or individuals, collaboration among the various constituencies with a stake in economic development, long-term planning and periodic reevaluation of the plan, extensive infrastructure improvements, and development of new industries and city identities.…”

“…Kodrzycki and Muñoz (2009b) found that, on average, the resurgent cities had more highly educated populations (especially 4-year college-educated) by the 2000s than the nonresurgent cities, after starting with similar average levels of educational attainment 50 years earlier. As is true of the literature in general, the authors did not address the sources of the higher educational attainment in the resurgent cities; for example, the shares of school-aged children in these cities that went on to complete high school or college versus migration patterns that led to less out-migration of highly educated adults or to greater out-migration of less educated adults.…”

“…Kodrzycki and Muñoz (2009b, 2014) examined population growth and changes in resident well-being in 26 midsized cities that had above-average reliance on manufacturing as of 1960 and that remained the central city of their metropolitan area at least until 1980. All the cities satisfying the criteria were located in the northeast, midwest, or upper south.…”

“…They found that the resurgent cities shared the following characteristics: leadership on the part of key institutions or individuals, collaboration among the various constituencies with a stake in economic development, long-term planning and periodic reevaluation of the plan, extensive infrastructure improvements, and development of new industries and city identities. Kodrzycki and Muñoz (2009b) noted that city-wide resurgence did not result in commensurate resurgence in their economically disadvantaged neighborhoods. For this reason, these cities often developed specific initiatives to help poor neighborhoods after the other aspects of their revitalization strategies were in place.…”