Final Flashcards

1
Q

Four approaches a practitioner can take

A

1) Facilitator
2) Technical assistance
3) conflict resolution
4) asset-based

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2
Q

Facilitator

A
  • community should, can, and will solve their own problems
  • Advantages: stronger sense of community, self-sustaining ability to solve community problems
  • disadvantages: works well, but slow in small communities, special interests may cloud issues, decisions based on impressions not fact
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3
Q

technical assistance

A
  • assumes well defined community with identified problem and gaol and moving toward a plan of action
  • approaches to assistance depends on: policy development and policy implementation
  • advantages: change can be rapid, works in any size community, task driven, decisions based on fact
  • disadvantages: illusion of the finality of the process, process lost to task accomplishment, loses holistic view, presumes practitioner has or can obtain technical skills
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4
Q

conflict resolution

A
  • community is fragmented/ gridlocked and practitioner must break it by acting as mediator or advocate
  • advantages: change is rapid, communication within community, future alliances formed
  • disadvantages: change sometimes not sustainable, practitioner viewed as biased
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5
Q

Asset-Based

A
  • community seeing itself as possessing a wide range of resources
  • development issue is what it’s residents can do for the community
  • community development is a process by which local capacities are identified and mobilized
  • relationship driven: need to build and rebuild relationships between individuals, citizen associations, and local institutions
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6
Q

strategic planning involves

A

1) diagnosing social, political, and economic trends
2) identify the community’s problems rather than the symptoms of the problem
3) develop a vision of where the community can be in the future
4) make goals and the objectives for achieving them

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7
Q

new logic of economic development (more flexible)

A

1) focus on innovation, flexibility, productivity, and quality
2) Emphasis on retention and expansion
3) attentive to smaller businesses and start-ups
4) service producing and information processing also important
5) attention on wages, fringe benefits, and skills matched to community
6) funding for training, market development, and R&D
7) global markets source of growth and competition
8) identify and exploit new markets constantly

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8
Q

old logic of economic development

A

1) focus on cost of doing business
2) attraction of branch plants
3) bigger businesses get attention
4) manufacturing and agriculture as engines of growth
5) any job created is acceptable
6) cheap capital is dominant
7) domestic market sufficient and protected
8) generic commodities and resources to sell established markets

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9
Q

Shift share analysis: three components of change

A

1) national growth component
2) industry mix component
3) competitive share component

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10
Q

regional base activity: what is it and different methods of finding it

A
  • activities that produce for export in the economy

- published data not available, surveys are expensive, assignment approach, location quotient

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11
Q

Assignment approach for regional base activity

A

base= produce for export from the region
nonbase= produce to fill local requirements
flawed because some industries produce for both base and non base

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12
Q

location quotient approach for regional base analysis

A

(industry’s share of the local economy)/ (industry’s share of the national economy)

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13
Q

LQi= (ei/eT)/(Ei/ET)

A
LQi= industry location quotient
ei= regional industry employment
eT= total regional employment
Ei= national employment in the industry
ET= total national employment
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14
Q

LQi=1

A

local employment share= national employment

self-sufficient in the good or service produced by the industry

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15
Q

LQi< 1

A

insufficient output in the industry meaning they import

possibility for import substitution

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16
Q

LQi>1

A

region produces more than it consumes

surplus is exported

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17
Q

bi=base employment

A

only use if LQi>1

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18
Q

ni= nonbase activity

A

.

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19
Q

assumptions of LQi method

A

1) assumes equal productivity in region and nationally
2) assumes the regions share of total national employment is a good proxy for the region’s immediate and final use of the output in the industry
3) assumes no cross-hauling
4) assumes no international exports
5) the results are sensitive to the level of aggregation
- -surveys and additional data make it more accurate

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20
Q

the minimum requirements approach to regional analysis

A

assume lowest percent of employment is the minimum requirement and the other counties are exporting
–> (county%pop-min%pop)100comm. job level= basic employment

21
Q

the minimum requirements approach to regional analysis assumptions

A

1) consumer incomes and preferences are the same in all communities
2) productivity and supply are the same in all communities
3) local consumption is met with local production (no cross hauling)
4) each community satisfies its own local consumption need with the minimum share of its labor force devoted to a particular activity

22
Q

Impact Analysis

A

measures the ripple effect of a change in one or more parts of the economy by looking at the primary impacts and secondary effects

23
Q

impacts on community development

A

local vs. nonlocal
monetary vs. nonmonetary
primary vs. secondary
positive vs. negative

24
Q

local vs. nonlocal

A

the smaller the area the more leakage into surrounding areas

25
Q

monetary vs. non monetary

A
  • also referred to as tangible and non tangible benefits

- skill level needed, type employed, cyclical employment or not

26
Q

primary and secondary impacts

A
  • primary: initial changes brought by development

- secondary impact: spin-off effects measured by multipliers

27
Q

positive and negative impacts

A

can attempt to mitigate negative impacts

28
Q

first step in Input Output Analysis is to disaggregate the economy into sectors. WHat sectors?

A

Intermediate Sector, Household Sector,

Rest of the world sector, government sector, capital sector

29
Q

transaction table: quadrants:

A

Intermediate, Final Demand, Value-Added, and Final Payments

30
Q

the direct requirement table

A

shows proportion of that industry’s expenditures on that input

31
Q

the total requirements table

A

shows the total increase in output in each industry following an initial $1 shock to the industry

32
Q

Indirect Effect= Total Effect- Direct Effect

A

for total effect listed in table 3 the direct effect is always 1

33
Q

output multipliers

A
  • indicated the total change in output in all industries in the economy resulting from a dollar change in final demand for output of a specific sector
  • sum of total requirements in a column
34
Q

income multipliers

A

indicates the total change in local income -resulting from a $1 direct change in income of a specific sector

  • Total output change* Direct income Effect=Income change
  • Income multiplier=total income change/ direct income change in impact sector
35
Q

Farm gate sales is skewed in the direction of a few very large farms

A

.

36
Q

todays agriculture:

A

1) buys more inputs
2) employs fewer workers
3) many of the 47,846 farms are hobby farms

37
Q

role of agriculture in the larger economy

A

1) product contribution of agriculture- forward linkage
2) the market contribution of agriculture- backward linkage
3) the factor contribution of agriculture- source of surplus labor
4) the export earnings contribution of agriculture
5) the transfer payment contribution- federal subsidies to limit production and encourage conservation

38
Q

how a farmer might respond to underemployment and low income in farming

A

1) expand farm size
2) add more enterprises within each farm
3) off-farm employment
4) quit farming

39
Q

Traditional approaches to rural development vs business development: traditional

A
  • Infrastructure and human capital

- both oriented toward industrial recruitment/ attract firms

40
Q

Traditional approaches to rural development vs business development: business development

A

start with managerial talent within the community

41
Q

why researchers and state policy makers promote business development approach

A

1) industrial recruitment brought few or no jobs
2) cost of attracting firms was expensive for industrial recruitment
3) outside firms are footloose and unreliable– economic instability

42
Q

types of business development programs

A

1) programs focusing on new business
2) programs focusing on expansion and retention of existing firms
3) programs focusing on innovative products

43
Q

direct government payments take several forms:

A

1) fixed income transfers
2) marketing loan and other miscellaneous program benefits
3) Ad Hoc emergency programs
4) Conservation payments

44
Q

Have farm payments helped sustain local economies?

A

no: high payment counties lost 3% of their population while other countries gained 11%; ineffective in overcoming the disadvantage that high payment counties had

45
Q

sources of the gap in pop. growth between high payment and other rural counties

A

1) natural amenities
2) population densities
3) economic characteristics
4) demographic attributes

46
Q

“dutch disease”reasons:

A

1) shrinkage of manufacturing community
2) exchange rate appreciation
3) commodity prices swing far more than prices of goods or services
4) sudden expansion of the public sector
5) Once expansion of public spending has started it is hard to stop
6) existence of natural resource wealth leads to corruption

47
Q

why opening of more mines in the South WEst will have limited influence on economic development:

A

construction, congestion, poor ability to attract tourism, most mining operations are foreign

48
Q

6 main components of business incubation, they provide:

A

1) flexible space and leases
2) fee-based business support services
3) group rates for health, life, and other insurance plans
4) business and and tech assistance
5) assistance in obtaining funding
6) networking with other entrepreneurs