An analysis of economic development variables critical to strategic planning for economic competitiveness

This study provides an analysis of the community economic development variables critical to strategic planning for economic competitiveness. Because of shifts toward a more global economy and toward a service based economy, Texas metropolitan areas have experienced structural changes in their local economies. These changes are most easily observed in differences in income and jobs per capita among metropolitan areas and in population groups within metropolitan areas.;The conceptual framework for this research is based on the theory that economic growth is dependent upon five conditions: wealth, resource location, human skills, technological change, and institutional change. Economic developers associate community infrastructure, access to markets, education, technological economic base, and entrepreneurism and leadership, respectively, with these five conditions. The relative importantance of these factors change with changing economic environments.;The research design is based on the 28 metropolitan areas in Texas. Multiple operational definitions are established for each of the five factors critical for economic growth. The statistical tests employed to test empirically the relative importance of these variables is based on parametric and nonparametric analysis. Nonparametric tests include Spearman rank order correlations, Mann-Whitney U test, and the Wilcoxon T test. Parametric analysis employed forward stepwise regression analysis and zero order correlations.;The results indicate that fifteen variables are associated with economic progress, eight variables with comparative advantages for economic growth, and five variables with competitive advantages for economic development. The relative importance of the variables varied with different economic conditions and with different races and ethnicities in the population. The most important variables in the 1980s were associated with education compared to community infrastructure and production factors in the 1970s. This research provides evidence that structural differences exist in the employment base among the white, Hispanic, and black populations.;This research indicates that income and job inequality is growing wider among metropolitan areas and within population groups. Even though the economic forecast is for continued economic expansion in Texas for the next two decades, the results of this research implies that the effects of income and job inequality could exacerbate economic, social, and political problems in Texas.