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Browsing by Author "Poerbonegoro, Anna Farina, author"

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    Essays on local economic development and social capital
    (Colorado State University. Libraries, 2024) Poerbonegoro, Anna Farina, author; Weiler, Stephan, advisor; Alves Pena, Anita, advisor; Zahran, Sammy, committee member; Suter, Jordan, committee member
    Creative Sector activities and social capital are interconnected in the same spectrum of local economic development, even though is not always immediately apparent. The two are related in that social capital is a product of, and simultaneously a determinant for, the Creative Sector. The three essays in this dissertation address each component separately. The first two essays examine the Creative Sector, and the third focuses on social capital. Motivated by the increasing role of the role of Creative Sector as growth driver and the economic base approach, in Chapter 1 titled Role of Creative Initiatives in Economic Performance: Case Study on Colorado's Creative Districts and Main Street Communities I examine the influence of Colorado's place-based initiative / policy on economic performance. Two dependent variables are chosen to represent performance, namely Business Establishments and Net Job Creation. In addition, sectoral employment (the Creative Sector and NAICS sector 71 (Arts, Entertainment and Recreation) and employment in sectors outside of the two) are examined as a supplement; for the placed-based policy, Creative District Certification program and the Main Street Communities program are selected, along with a set of control variables and a set of interaction terms that signify co-existence of the two policies in any particular county. The data used in estimation is a panel dataset for Colorado's 64 counties in a ten-year period (2010 – 2019). Results indicate that both place-based initiatives affect business establishments but not their birth rates, but each influence is opposite direction; co-location of the two is also playing a role, which is positive in Urban areas but negative in Rural areas. Job creation is positively influenced by the MS Communities program in the Rural region but not by Creative District certification program. Creative Sector employment is slightly negatively influenced by the initiatives; in contrast, they do not influence employment in either Sector 71 or Other Sectors. The results suggest that the two initiatives are beneficial, but each for different types of counties. Chapter 2, titled Sectoral Employment Spillover in Colorado, focuses on spatial spillover effects of employment in two leading industrial sectors – namely the Arts, Recreation and Entertainment (NAICS 71 or Sector 71) and the Creative Sectors – on employment in Other Sectors in Colorado, based on the Economic Base Theory. The analysis is performed using county-level Quarterly Census of Employment and Wages (QCEW) data. The study aims at answering the question of whether sectoral employment in one county affects that in a neighboring county (in other words, whether spatial correlation exists). Moreover, the analysis also examines how sectoral employment (Creative Sector and Sector 71) in one county influences employment in sectors outside the two, in different counties; this is the employment spillover question. Two variations of model specifications are tested, examined spatially and non-spatially, using lagged variables in one model and lagged log variables in another. The result suggests that overall, the two sectoral employments do influence Other Employment, but the spatial spillover is not detected. More specifically, the Creative Sector is negatively associated with the next period's employment in Other Sectors in both models. However, the significance of Sector 71 employment's relationship with employment in Other Sectors depends on how it is modeled. Social Capital is discussed in Chapter 3, County Level Social Capital in Colorado. While social capital is acknowledged as being a fuzzy concept, it embeds both demand and supply side within itself. While the demand side typically addresses how social capital affects other dimensions in economics, Chapter 3 here focuses on the supply side, by inquiring how social capital at county level in Colorado is affected by various socio-economic aspects. The discussion covers various standpoints of social capital contexts and definitions that are indicative of the fuzziness of the concept itself. Empirically, I employ a quantitative measure of social capital in the form of an index portraying civic participation (developed by Rupasingha et al. (2006)). A short panel regression was performed using a series of explanatory variables (physical infrastructure, poverty, unemployment, personal and regional incomes, education, and an economic recession). The results indicate that poverty and economic shock have the tendency to reduce social capital in Colorado in the form of civic engagement particularly in Urban regions, while larger pool of the unemployed in the society indicates a positive relationship with civic participation. Physical infrastructure, proxied by new housing permits, is negatively associated with civic participation in all three regions.