The Configuration of Local Economic Power and Civic Participation in the Global Economy

Abstract

In this paper we test the hypothesis that local economic concentration is associated with decreased levels of civic participation. We define economic concentration as a social context in which a small number of corporate establishments or industries dominate a local economy. We argue that economic concentration leads to a monolithic power structure and generates civic apathy because the needs of the corporation override those of the local population. To test this hypothesis, we employ combined data from the 2000 Social Capital Benchmark Survey and the County Business Patterns. Our findings indicate that local economic concentration is negatively associated with traditional electoral participation and protest activities. We conclude by discussing implications for current theoretical work on civic community, embedded within the empirical decline in U.S. civic engagement over the past three decades.

A public health perspective on small business development: a review of the literature

“…The authors employed an economic concentration index, as a measure of the size of businesses, that included three items: (1) percentage of total employment accounted for by the four largest business establishments in a community; (2) percentage of the labor force employed in large retail, large manufacturing, corporate headquarters, regional management offices, subsidiaries and auxiliary establishment; and (3) concentration of employment in a specific industry. They found that a one-point increase in the economic concentration index was associated with a statistically significant 0.138 (SE:0.03) point decrease in the electoral politics index (a measure of whether a respondent participates in the voting process, follows current events, knows information about politics, and knows the name of their senators), and a 16% (OR:0.84; SE .05) decrease in the odds of participating in local reform activities, such as protest (Blanchard and Matthews 2006). These findings indicate that counties in which economic activity is highly concentrated in only a few large businesses have lower levels of engagement in political activity and problem-solving behavior by residents.…”

“…Several single-city studies examined the local economic effects of small business and found that small and locally owned businesses reinvested a greater percentage of their revenue to the local economy than did national chain retailers (CUPE-BC 2013; Patel and Martin 2011; The Urban Conservancy 2009). Additionally, products created by local businesses are often consumed by residents of the same community, giving entrepreneurs greater incentive to support efforts to increase community capital and purchasing ability, further boosting the local economy (Blanchard and Matthews 2006).…”

“…They also found a strong positive relationship between local retail and both the number of locations used for public gathering spaces, as well as voter turnout for national elections (Tolbert 2005). Blanchard and Matthews (2006) examined how the size of businesses in a community relate to civic engagement. The authors employed an economic concentration index, as a measure of the size of businesses, that included three items: (1) percentage of total employment accounted for by the four largest business establishments in a community; (2) percentage of the labor force employed in large retail, large manufacturing, corporate headquarters, regional management offices, subsidiaries and auxiliary establishment; and (3) concentration of employment in a specific industry.…”

Theoretical issues in the ‘food desert’ debate and ways forward

“…Especially in the authors' study area of Flint, Michigan, which was previously dominated by a single employer-General Motors-and which has experienced considerable economic repercussions by its departure (Jacobs 2009), it is plausible to believe that sufficient public activism may be difficult to muster change in local food policy (Blanchard and Matthews 2006). In this case, policy change would be directed from higher levels of government and likely would not reflect civic participation, thus resulting in a mismatch in policy implementation.…”

The Enduring Conflict of “Jobs Versus the Environment”: Local Pollution Havens as an Integrative Empirical Measure of Economy Versus Environment

“…While debate exists about the appropriate unit of analysis in environmental sociology (Allen 2001;Downey 1998), counties are chosen because of the availability of data at this level, and also due to the widespread use of the county as a unit of analysis in macro-level research (Allen 2001;Blanchard 2007;Blanchard and Matthews 2006). The data used to construct the LPH measure are drawn from multiple sources, including (1) The EPA Toxic Release Inventory and Risk Screening Environmental Indicators (RSEI) include data on releases and transfers of toxic chemicals from large facilities (U.S. Environmental Protection Agency 2006a).…”