The Economic Status of Areas Surrounding Major U.S. Container Ports: Evidence and Policy Issues

Abstract

This article examines the current economic status of the areas surrounding major U.S. container ports. We define a "port district" as the geographic area within a 7.5-mile radius of a port. Our sample includes the 10 largest container ports in the U.S. We find that when we compare port districts to their surrounding metropolitan areas, household unemployment and poverty rates are significantly higher in port districts. Thus, the same ports that serve as "economic engines" for the region and nation may be the cause of economic decline and deterioration in the immediate areas that surround them. This presents a challenge for policy makers who want to preserve the benefits of international trade while facing increasing opposition to port expansion by local communities. Copyright (c) 2008 Copyright the Authors. Journal compilation (c) 2008 Wiley Periodicals, Inc..

River of Traffic: The Spatial Fragmentation of US Ports

“…Such fragmentation alters the terrain of employment in the sector, and since CAMPBELL's (1993) study, the connection between ports and employment has been called into question (GROBAR, 2008;HELLING and POISTER, 2000). However, as CHRISTOPHERSON and BELZER (2009, p. 205) point out, 'systematic analysis of investments and employment in places -within and across metropolitan areas -is rare'.…”

Spatial effects of container ports on production of the leather, bag and shoe industry in Korea

“…Although Goss (1990) does not study in detail the effects of port development on specific manufacturers, he does suggest that the improvement of port efficiency can benefit both producer and consumer; he goes on to specialisation in some sectors and diversification in others (Goss, 1990). One study interpreting the role of a port in containerisation in the USA finds that ports may cause the economic decline in the port district (Grobar, 2008). As the global economy and regional industries evolve, some industries grow as others diminish and we can observe how port cities shift their manufacturing from developed to developing countries, and how, gradually, industrial clusters start to change and sometimes disappear.…”

The Port and its Environment

“…Finally, another interesting result was that those respondents that earned their living from the port of Valencia were less likely to accept the compensation offered to them. In this respect, Grobar (2008) notes that port district residents will have less incentive to oppose to port expansion the better they able to take advantage of the economic opportunities arising from ports. .…”