Top Banner

of 26

Cities and Economic Prosperity

Apr 05, 2018

Download

Documents

Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
  • 8/2/2019 Cities and Economic Prosperity

    1/26

    ,7,(6$1'&2120,&!5263(5,7

  • 8/2/2019 Cities and Economic Prosperity

    2/26

    5:9HQWXUHVZLWK6KRUHEDQN

    7+(52/(2)&,7,(6,1

    5(*,21$/$1'1$7,21$/(&2120,(6

    ([H.XWLYH6XPPDU\

    8UEDQH.RQRPLHVRIIHUWUHPHQGRXVRSSRUWXQLWLHVDVYHKL.OHVIRUUHJLRQDODQGQDWLRQDOH.RQRPL.

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

    7KLV5HSRUWGHYHORSVDGDWDSL.WXUHRI.LWLHVLQOD\HUVVWDUWLQJZLWKDVWDWL.VQDSVKRWRINH\H.RQRPL.LQGL.DWRUVDQGPRYLQJWKURXJKPRUHWDUJHWHGYLHZVRI.ULWL.DOW\SHVRI.LWLHVDQG

    H.RQRPL.D.WLYLW\$IHZNH\PHVVDJHVHPHUJHIURPWKLVGHYHORSLQJSL.WXUHRIWKHDVVHWVDQGUROHRI.LWLHV

    /RRNLQJILUVW6H.WLRQ,6QDSVKRWRI(.RQRPL.,QGL.DWRUVVLPSO\DWWKHGLVWULEXWLRQRIH.RQRPL.DVVHWVDQGD.WLYLW\LQWKHQDWLRQUHYHDOVWKHIROORZLQJSL.WXUH

    :HKDYHEH.RPHDPHWURSROLWDQQDWLRQ&RQVLVWHQWO\RIWKHQDWLRQVH.RQRPL.DVVHWVDQGGULYHUVDUHLQPHWURSROLWDQDUHDV

    7KH.LWLHVSRUWLRQRIPHWURSROLWDQRXWSXWLVYHU\VXEVWDQWLDO$.URVVQXPHURXVEDVHOLQHH.RQRPL.LQGL.DWRUV.LWLHV.RQVWLWXWHDWOHDVWRIWKHDVVHWVDQGSURGX.WLYLW\RIPHWURSROLWDQDUHDV

    7KH.LWLHVSRUWLRQLVQRWRQO\VXEVWDQWLDOLWVGLVSURSRUWLRQDWH(YHQDWWKHVQDSVKRWOHYHOLWLV.OHDUWKDW.LWLHVSOD\DGLVSURSRUWLRQDWHO\LPSRUWDQWUROH7KHLUSRUWLRQRINH\DVVHWVDQGSURGX.WLYLW\LVPX.KJUHDWHUWKDQWKHLUSRUWLRQRISHRSOHRUSDUWL.XODUO\VSD.H

    7KHVQDSVKRWRIPHWURSROLWDQDUHDVDQG.LWLHVLQWKHDJJUHJDWHPDVNVWKHHQRUPRXVLPSD.WDVZHOODVWKHVSH.LDOQDWXUHRIWKHLPSD.WRISDUWL.XODUW\SHVRI.LWLHV*OREDO.LWLHV.RQVXPHU.LWLHVDQGRWKHUYDULDWLRQVDUHHPHUJLQJLQWKHQHZH.RQRP\7DNLQJD.ORVHUORRNLQ6H.WLRQ,,WKHQDWIR.XV.LWLHVUHYHDOVWKDW

    H\.LWLHVDUHSDUWL.XODUO\.UX.LDO.RQWULEXWRUVWRWKHQDWLRQDOH.RQRP\/RRNLQJDW

    .RQ.HQWUDWLRQVRIH.RQRPL.D.WLYLW\LQW\SHVRI.LWLHVKLJKOLJKWVERWKWKHKXJHO\GLVSURSRUWLRQDWH.RQWULEXWLRQRIWRS.LWLHVDQGWKDW.LWLHVDUHKHWHURJHQHRXVHD.KW\SHRIIHULQJLWVRZQH.RQRPL.RSSRUWXQLWLHV

    6H.WLRQ,,,WDNHVDIXUWKHU.ORVHUORRNEH\RQGWKHVQDSVKRWWKLVWLPHH[DPLQLQJW\SHVRIH.RQRPL.D.WLYLW\:HILQGWKDW

    &LW\H.RQRPLHVDUHGLVSURSRUWLRQDWHO\.RQ.HQWUDWHGLQNH\W\SHVRIQHZH.RQRP\D.WLYLW\&LWLHVDUH.HQWHUVRINH\LQGXVWULHVSDUWL.XODUO\QHZH.RQRP\VH.WRUVWKDW.RQVWLWXWHD

  • 8/2/2019 Cities and Economic Prosperity

    3/26

    5:9HQWXUHVZLWK6KRUHEDQN

    GLVSURSRUWLRQDWHDQGJURZLQJVKDUHRIWKHQDWLRQDOH.RQRP\,QGHHGZDJHVDUHKLJKHUDQGJURZLQJIDVWHULQ.LWLHV

    &LWLHVDUHKXEVIRUPHWURSROLWDQDUHDV&LWLHVGLVSURSRUWLRQDWHO\KRXVHDVVHWVRQZKL.KWKHLUPHWURSROLWDQH.RQRPLHVSDUWL.XODUO\GHSHQG7KHVHLQ.OXGHLQWHOOH.WXDODQGLQVWLWXWLRQDODVVHWVVX.KDVXQLYHUVLWLHVDQGKRVSLWDOVLQIUDVWUX.WXUHDVVHWVVX.KDVWUDQVSRUWDWLRQDQG.RPPXQL.DWLRQVR.LDODVVHWVWRXULVPHQWHUWDLQPHQW.XOWXUHDQG.RUHVHUYL.HDVVHWV

    ILQDQ.LDOOHJDO

    &LWLHVDUHGULYHUVRIPHWURSROLWDQH.RQRPLHV0RGHOLQJRIWKHIORZDQGPXOWLSOLHUHIIH.WVRIH.RQRPL.D.WLYLW\LQ&KL.DJRVXJJHVWVWKDW.LWLHVGLVSURSRUWLRQDWHO\GULYHVXEXUEDQD.WLYLW\

    )LQDOO\6H.WLRQ,9IR.XVHVIXUWKHURQWKHUHODWLRQVKLSRI.LWLHVDQGWKHLUVXEXUEVDQGILQGV

    7KHH.RQRPLHVRI.LWLHVDQGVXEXUEVDUHLQWHUWZLQHGDQG.RGHSHQGHQW7KHLUH.RQRPLHVPRYHLQWDQGHPQRWLQRSSRVLWLRQ7KHLPSRUWDQWSRLQWPD\EHQRWZKL.KKDVPRUHDVVHWVRUGULYHVWKHRWKHUEXWWKDW.LWLHVDQGVXEXUEVVX..HHGRUIDLOWRJHWKHU7KLVLVEH.DXVH

    (.RQRPLHVDUHUHJLRQDODQGGRQRWREH\SROLWL.DOERXQGDULHV)XUWKHUPRUHDVUHJLRQDOH.RQRPLHVGLUH.WO\SDUWL.LSDWHLQJOREDOH.RQRPLHVQDWLRQDOJRYHUQPHQWVKDYHDQHYHULQ.UHDVLQJVWDNHLQHQVXULQJWKH.RPSHWLWLYHQHVVRIWKHLU.LWLHV

    )R.XVLQJRQWKHDVVHWVRI.LWLHVDVLQWHJUDODQGYLWDOSDUWVRIUHJLRQDOH.RQRPLHVUHYHDOVYLEUDQWRSSRUWXQLWLHV,QGHHG.LWLHVRIIHURQHRIWKHPRVWVWUDWHJL.OHYHUDJHSRLQWVIRUVWUHQJWKHQLQJWKHQDWLRQDOH.RQRP\7DNLQJDSHUVSH.WLYHZKL.KXQGHUVWDQGVDQGLQYHVWVLQWKHGLYHUVHDVVHWVRI.LWLHVJHWWLQJSDVWROGSHU.HSWLRQVDQGEDWWOHOLQHVRIIHUVWKHSRVVLELOLW\RIPX.KPRUHSURGX.WLYHH.RQRPL.GHYHORSPHQWIRUWKH.RXQWU\DVDZKROH

  • 8/2/2019 Cities and Economic Prosperity

    4/26

    5:9HQWXUHVZLWK6KRUHEDQN

    ,QWURGX.WLRQ

    7KHHQRUPRXVDVVHWVRIRXUQDWLRQV.LWLHVIUHTXHQWO\JRXQVHHQORVWLQD.RQVWDQWVWUHDPRIQHJDWLYHPHVVDJHVVXSSRUWLQJGHIL.LHQ.\EDVHGSROL.LHVDQGLQVWLWXWLRQV:HKHDUDERXW.RQ.HQWUDWLRQVRISRYHUW\EXWQRW.RQ.HQWUDWLRQVRIZHDOWK:HKHDURIKLJKXQHPSOR\PHQWEXWQRWRIEHWWHUDQGKLJKHUSD\LQJMREV:HKHDUDERXWGH.D\LQJLQIUDVWUX.WXUHEXWQRWDERXWWKHWUDQVSRUWDWLRQLQVWLWXWLRQDODQGLQWHOOH.WXDOKXEVWKDWGULYHUHJLRQDODQGQDWLRQDOH.RQRPLHV:H

    KHDUDERXWQHHGVEXWQRWDERXWRSSRUWXQLWLHV

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

    )LQDOO\ERWKRIWKHVH.KDQJHVDUHEHLQJUHIOH.WHGLQHYROYLQJSHU.HSWLRQVRIWKHUROHRIJRYHUQPHQW1HZSURJUDPVLQ.UHDVLQJO\IR.XVRQDVVHWVDQGH.RQRPL.GHYHORSPHQWWDNLQJDQDSSURD.KZKL.KHQJDJHVEXVLQHVVHVDQGPDUNHWVUDWKHUWKDQVXSSODQWLQJWKHP6LPLODUO\XQGHUWKHUXEUL.RIUHLQYHQWLQJJRYHUQPHQWWKHUHKDVEHHQLQ.UHDVLQJH[DPLQDWLRQRIZKHWKHUWKLVQHZDSSURD.KHQWDLOVDGLIIHUHQWUROHDQGSUR.HVVIRUJRYHUQPHQW

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

  • 8/2/2019 Cities and Economic Prosperity

    5/26

    5:9HQWXUHVZLWK6KRUHEDQN

    3RSXODWLRQ 3RSXODWLRQ

    *URZWK

    (PSOR\PHQW +RXVLQJ6WR.N *'3

    $0HWURSROLWDQ1DWLRQ3HRSOH$VVHWV

    06$DVRI867RWDO 1RQPHWURDV867RWDO

    7RS06$VRQO\

    ,6QDSVKRWRI(.RQRPL.,QGL.DWRUV7KH$VVHWVRI&LWLHV

    :KHUHYHU\RXOLYHZKDWHYHU\RXGR.LWLHVD..RXQWIRUDODUJHVKDUHRIWKHJRRGV\RX.RQVXPHWKH.RQVXPHUVRI\RXUSURGX.WVDQGVHUYL.HVWKHHPSOR\HHV\RXXVHDQG\RXUHPSOR\PHQWDQGWKHLQ.RPHVDYLQJVWD[SD\PHQWVDQGRWKHUUHVRXU.HVRIWKHQDWLRQDOH.RQRP\

    :HEHJLQE\H[DPLQLQJWKLV.RUHH.RQRPL.D.WLYLW\DQGWKHH[WHQWWRZKL.KLWR..XUVZLWKLQ

    PHWURSROLWDQDUHDVLQWKHDJJUHJDWHDQGWKHQZLWKLQWKHLU.RUH.LWLHV

    :HKDYH%H.RPHD0HWURSROLWDQ1DWLRQE\DQ\PHDVXUHWKHQDWLRQDOH.RQRP\LVRYHUZKHOPLQJO\.HQWHUHGLQDQGGULYHQE\PHWURSROLWDQDUHDV

    &RQVLVWHQWO\RIWKHQDWLRQVH.RQRPL.DVVHWVDQGGULYHUVDUHLQPHWURSROLWDQDUHDVLQ.OXGLQJSHRSOHEXVLQHVVHVMREVLQ.RPHDVVHWVWD[SD\PHQWV*'3DQGH[SRUWV

    )LJXUH

    (LJKW\SHU.HQWRIXVOLYHLQPHWURSROLWDQDUHDVDQGWKHSRSXODWLRQ.RQWLQXHVWRVKLIWWRZDUGVPHWURSROLWDQOLYLQJ(LJKW\SHU.HQWRIXVZRUNLQPHWURVDVZHOO7KLV.RQ.HQWUDWLRQLVPLUURUHGLQ

    WKHQDWLRQVDVVHWGLVWULEXWLRQ$SSUR[LPDWHO\RIWKHJURVVQDWLRQDOSURGX.WLVSURGX.HGDQGMXVWXQGHURIWKHKRXVLQJVWR.NLVOR.DWHGLQPHWURSROLWDQDUHDV7KHSHRSOHDQGDVVHWVRIWKHQDWLRQDUHRYHUZKHOPLQJO\DQGLQ.UHDVLQJO\.RQ.HQWUDWHGLQPHWURSROLWDQDUHDV

    0HWURSROLWDQDUHDVDUHDOVRWKHQDWLRQV.HQWHUVRI.RQVXPSWLRQWKH\KROGRIWRWDO86.RQVXPHUGROODUV5HODWHGLQGL.DWRUVUHYHDOWKDWRILQ.RPHLVHDUQHGLQPHWURSROLWDQDUHDVDQGPHWURSROLWDQDUHDVD..RXQWIRURIIHGHUDOLQ.RPHWD[HV.ROOH.WHG7KHSURGX.WLRQSL.WXUHLVDWOHDVWDVVWURQJWRWDOSURGX.WLRQ.RQWULEXWLRQWRH[SRUWVYDOXHDGGHGLQPDQXID.WXULQJDQGRWKHULQGL.DWRUVDOOSOD.HRYHURIRXUQDWLRQVSURGX.WLYLW\LQPHWURSROLWDQDUHDV

  • 8/2/2019 Cities and Economic Prosperity

    6/26

    5:9HQWXUHVZLWK6KRUHEDQN

    )LJXUH

    /RRNLQJDWWKLVSL.WXUHRYHUWLPHUHYHDOVWKDWWKHPHWURSROLWDQL]DWLRQRIRXUQDWLRQDOH.RQRP\KDVEHHQDORQJWHUPWUHQG

    PLOOLRQV

    5HVWRI86 7RS06$V 5HVWRI86 7RS06$V

    *53 ,QGXVWU\,Q.RPH

    *URZWKLQ*53DQG,QGXVWU\,Q.RPH7RS06$VYV5HVWRI86

    )LJXUH

    2YHUWKHSDVW\HDUVPHWURSROLWDQH.RQRPL.JURZWKSDUWL.XODUO\DVPHDVXUHGE\*URVV5HJLRQDO3URGX.WWKH.RQWULEXWLRQRIDUHJLRQWR*URVV'RPHVWL.3URGX.WZDVVXEVWDQWLDOO\ODUJHUWKDQLQQRQPHWURSROLWDQDUHDV*53DQG,QGXVWU\,Q.RPHJUHZDQGUHVSH.WLYHO\PRUHLQPHWURSROLWDQDUHDV

    $JJUHJDWH

    3HUVRQDO

    ,Q.RPH

    &RQVXPHU

    ([SHQGLWXUHV

    7D[3D\PHQWV 7RWDO(.RQRPL.

    *URZWK

    0DQXID.WXULQJ

    9DOXH$GGHG

    ([SRUWV %XVLQHVV

    (VWDEOLVKPHQWV

    $0HWURSROLWDQ1DWLRQ%X\LQJ3RZHU3URGX.WLRQ

    06$DVRI867RWDO 1RQPHWURDVRI867RWDO

  • 8/2/2019 Cities and Economic Prosperity

    7/26

    5:9HQWXUHVZLWK6KRUHEDQN

    7KH&LWLHV3RUWLRQRIWKH0HWURSROLWDQ2XWSXWLV9HU\6XEVWDQWLDO

    $JUHDWGHDORIWKHH.RQRPL.D.WLYLW\DQGSURGX.WLYLW\RIPHWURSROLWDQDUHDVLVKRXVHGLQ.LWLHV

    3RSXODWLRQ

    +RXVLQJ6WR.N

    &RQVXPHU6SHQGLQJ

    (PSOR\PHQW$OO,QGXVWULHV

    7RWDO%XVLQHVV(VWDEOLVKPHQWV

    2IIL.H6SD.H

    &LWLHV$UHD/DUJH3RUWLRQRI0HWURSROLWDQ(.RQRPLHV

    &LW\DVRI06$7RWDO

    )LJXUH

    $JDLQVXUSULVLQJO\.RQVLVWHQWO\D.URVVQXPHURXVEDVHOLQHH.RQRPL.LQGL.DWRUV.LWLHV.RQVWLWXWHDWOHDVWRIWKHDVVHWVDQGSURGX.WLYLW\RIPHWURSROLWDQDUHDV,IPHWURSROLWDQDUHDVHIIH.WLYHO\$5(WKHQDWLRQDOH.RQRP\.LWLHVDUHDODUJHDQG.ULWL.DOSDUWRIPHWURSROLWDQH.RQRPLHV$VZHWDNHDPRUHGHWDLOHGORRNDWWKHQDWXUHRIWKH.LWLHV.RQWULEXWLRQEHORZ6H.WLRQV,,,9PX.KPRUHGDWD.RQILUPVWKLVIXQGDPHQWDOREVHUYDWLRQ

  • 8/2/2019 Cities and Economic Prosperity

    8/26

    5:9HQWXUHVZLWK6KRUHEDQN

    86%LOOLRQV

    7RS86

    &LWLHV

    &KLQD %UD]LO &DQDGD 6SDLQ 0H[L.R

    $JJUHJDWH,Q.RPHRI7RS86&LWLHVYV*'3RI2WKHU&RXQWULHV

    )LJXUH

    $QRWKHUZD\RIXQGHUVWDQGLQJWKHH[WUDRUGLQDU\OHYHORIRXUQDWLRQVH.RQRPL.D.WLYLW\WKDWLVKRXVHGLQ.LWLHVLVWR.RPSDUHWKHLUH.RQRPLHVWRIRUHLJQ.RXQWULHV,IMXVWRXUWRS.LWLHVZHUHDVHSDUDWH.RXQWU\WKHLUDJJUHJDWHSHUVRQDOLQ.RPHDORQHZRXOGPDNHWKHPWKHVL[WKODUJHVWH.RQRP\LQWKHZRUOGEHKLQGRQO\-DSDQ*HUPDQ\)UDQ.HWKH8DQG,WDO\

    7KH&LWLHV6KDUHLVQRWRQO\6XEVWDQWLDOLWV'LVSURSRUWLRQDWH

    ,WLVZRUWKQRWLQJWKDWHYHQDWWKLVVQDSVKRWOHYHOWKHGDWDUHYHDOVWKDW.LWLHVSOD\DGLVSURSRUWLRQDWHO\LPSRUWDQWUROHLQPHWURSROLWDQH.RQRPLHV7KH.LWLHVVKDUHRIH.RQRPL.D.WLYLW\VX.KDVEXVLQHVVHVWDEOLVKPHQWVDQGHPSOR\PHQWVHHIRUH[DPSOHILJXUHLVVLJQLIL.DQWO\KLJKHUWKDQWKHLUVKDUHRISRSXODWLRQ

    )LJXUH

    RS &LWLHV&RQWUL XWH'LVSURSRUWLRQDWH3HU.HQWDJH

    RI1HZ%XVLQHVV6WDUWV

    1HZ)LUPV 1HZ(PSOR\HHV

    7RS&LWLHV &LW\0XOWLSOLHU3RSXODWLRQWR1HZ(PSOR\PHQW

  • 8/2/2019 Cities and Economic Prosperity

    9/26

    5:9HQWXUHVZLWK6KRUHEDQN

    ([DPLQLQJEXVLQHVVVWDUWVDSDUWL.XODUO\.ULWL.DO.RQWULEXWLRQWRH.RQRPL.JURZWKWKHWRS.LWLHVD..RXQWIRURIQHZILUPVDQGRIHPSOR\PHQWLQQHZILUPVEXWRQO\RIWKHSRSXODWLRQ7KH.LW\PXOLSOLHUUHIOH.WLQJWKHH[WHQWWRZKL.KWKHVH.LWLHV.RQWULEXWLRQWRQHZILUPVDQGHPSOR\PHQWLVGLVSURSRUWLRQDWHWRWKHLUVKDUHRISRSXODWLRQLVWKXVDQGUHVSH.WLYHO\

    3URSRUWLRQDWHWRWKHLUODQGPDVVWKH.LWLHV.RQWULEXWLRQWRWKHPHWURSROLWDQDQGQDWLRQDOH.RQRPLHV

    LVRI.RXUVHPX.KPRUHGUDPDWL.7KRXJKWKLVPD\VHHPREYLRXVLWLVQROHVVLPSRUWDQWWKLVGHQVLW\RIH.RQRPL.D.WLYLW\LVRQHNH\EDVLVRIWKHGHYHORSLQJ.RPSHOOLQJUHVHDU.KRQWKHHIIL.LHQ.LHVRI.LWLHVDQGWKH.RVWVRIXUEDQVSUDZO

    7KHGLVSURSRUWLRQDWHLPSRUWDQ.HRINH\W\SHVRI.LWLHVDQGRINH\H.RQRPL.D.WLYLWLHVZLWKLQ.LWLHVDUHWKHVXEMH.WVRIWKH6H.WLRQV,,DQG,,,

  • 8/2/2019 Cities and Economic Prosperity

    10/26

    5:9HQWXUHVZLWK6KRUHEDQN

    ,,7DNLQJ$&ORVHU/RRN/RRNLQJDW7\SHVRI&LWLHV

    7KH6QDSVKRWORRNVDWPHWURSROLWDQDUHDVDQG.LWLHVLQWKHDJJUHJDWH.RPELQLQJPHWURVDQG.LWLHVRIDOOW\SHVDQGDOOSHUIRUPDQ.HOHYHOV%\IDLOLQJWRGLIIHUHQWLDWHEHWZHHQW\SHVRI.LWLHVWKLVDJJUHJDWLRQPDVNVWZRLPSRUWDQWSRLQWVWKHWRS.LWLHVPDNHSDUWL.XODUO\LPPHQVH.RQWULEXWLRQVDQGYDU\LQJ.LWLHVPDNHTXLWHGLIIHUHQWW\SHVRI.RQWULEXWLRQV7KHQDWLRQV.LWLHVSUHVHQWTXLWHYDULHGDVVHWVDQGRSSRUWXQLWLHVVXJJHVWLQJGLIIHULQJSRVVLELOLWLHVIRUVWUDWHJL.LQYHVWPHQW

    )R.XV&LWLHVH\&LWLHVDUH3DUWL.XODUO\&UX.LDO&RQWULEXWRUVWRWKH1DWLRQDO(.RQRP\

    $JJUHJDWH,Q.RPH

    &RQVXPHU([SHQGLWXUHV

    6H.XULWLHV&RPPRGLWLHV%URNHUV

    %XVLQHVV6HUYL.HV

    /HJDO6HUYL.HV

    (GX.DWLRQDO6HUYL.HV

    (QJLQHHULQJ0DQDJHPHQW6HUYL.HV

    7RS&LWLHV0DNHH\&RQWULEXWLRQV

    7RS.LWLHVDVRIWRS

    )LJXUH

    7RJHWDVHQVHRIWKHH[WHQWWRZKL.KDJJUHJDWLRQZDVKLGLQJWKHVLJQLIL.DQ.HRIKLJKHVWSHUIRUPLQJ.LWLHVZHORRNHGZLWKUHVSH.WWR.DWHJRULHVRID.WLYLW\SDUWL.XODUO\VLJQLIL.DQWWRWKHUROHRI.LWLHVDWWKHSURSRUWLRQDO.RQWULEXWLRQRIWKHWRSRI.LWLHVLQHD.K.DWHJRU\)RUH[DPSOHWKHWRS.LWLHVIRU.RQVXPHUH[SHQGLWXUHVD..RXQWIRURIH[SHQGLWXUHVLQWKHWRS.LWLHV7KHWRS.LWLHVLQHGX.DWLRQDOVHUYL.HVD..RXQWIRURIDOOHGX.DWLRQDOVHUYL.HVHPSOR\PHQWLQWKHWRS&OHDUO\WRS.LWLHVDUHPDVVLYH.RQWULEXWRUV

  • 8/2/2019 Cities and Economic Prosperity

    11/26

    5:9HQWXUHVZLWK6KRUHEDQN

    7RS&LWLHV$WWUD.W0RVW)RUHLJQ7RXULVPWR86

    2UODQGR

    6DQ)UDQ.LV.R

    5HVWRI86

    1HZ

  • 8/2/2019 Cities and Economic Prosperity

    12/26

    5:9HQWXUHVZLWK6KRUHEDQN

    3HU.HQWRI7RWDO86([SRUWV

    'HWURLW

    0LDPL

    %RVWRQ

    &KL.DJR

    6HDWWOH%HOOHYXH

    (YHUHWW

    6DQ-RVH

    0LQQHDSROLV

    6W3DXO

    +RXVWRQ

    5HVWRI86

    /RV$QJHOHV/RQJ

    %HD.K

    7RS06$V

    1HZ

  • 8/2/2019 Cities and Economic Prosperity

    13/26

    5:9HQWXUHVZLWK6KRUHEDQN

    YDULDWLRQEHWZHHQW\SHVRI.RQWULEXWLRQV1RWDOOLQGXVWU\OHDGLQJPHWURVDUHJOREDO.LWLHV,QGLDQDSROLVDQG1HZDUNDUHNH\H.RQRPLHVIRUWKHQDWLRQVSKDUPD.HXWL.DOLQGXVWU\

    7KHSRLQWRI.RXUVHLVWKDWQRWDOO.LWLHVRUPHWURVDUHHTXDOLQVWHDGHYHQD.XUVRU\GDWDV.DQUHYHDOVHQRUPRXVYDULDWLRQERWKLQWKHH[WHQWDQGQDWXUHRIWKHLU.RQWULEXWLRQVWRWKHQDWLRQDOH.RQRP\H\.LWLHVDUHREYLRXVO\KXJHO\GLVSURSRUWLRQDWH.RQWULEXWRUV$VLPSRUWDQWYDULHGPHWURVKDYHTXLWHGLIIHUHQW.RQWULEXWLRQVWRPDNH$QDSSURD.KZKL.KDVSLUHVWRVWUDWHJL.DOO\LQYHVW

    LQWKHDVVHWVRI.LWLHVWKDW.RQWULEXWHWRUHJLRQDODQGQDWLRQDOH.RQRPLHVZLOOXOWLPDWHO\EHQHILWIURPGLIIHUHQWLDWLQJEHWZHHQW\SHVRI.LWLHVDQGPHWURVDQGUH.RJQL]LQJWKDWHD.KSUHVHQWGLIIHUHQWDVVHWVDQGRSSRUWXQLWLHV

  • 8/2/2019 Cities and Economic Prosperity

    14/26

    5:9HQWXUHVZLWK6KRUHEDQN

    ,,,7DNLQJ$&ORVHU/RRN7\SHVRI(.RQRPL.$.WLYLW\

    -XVWDVH[DPLQLQJ.LWLHVLQWKHDJJUHJDWHPDVNVNH\GLIIHUHQ.HVEHWZHHQW\SHVRI.LWLHVH[DPLQLQJDJJUHJDWHH.RQRPL.LQGL.DWRUV.DQPDVNNH\GLIIHUHQ.HVEHWZHHQH.RQRPL.VH.WRUVRUW\SHVRID.WLYLW\,QID.W.LWLHVSOD\DUROHLQWKHQDWLRQDOH.RQRP\IDUPRUH.ULWL.DOWKDQHYHQWKHVWDWL.VQDSVKRWUHYHDOV&LW\H.RQRPLHVDUHGLVSURSRUWLRQDWHO\.RPSRVHGRIWKHPRVWLPSRUWDQWDQGKLJKHVWJURZWKW\SHVRIH.RQRPL.D.WLYLW\DQG.LWLHVDOVRKRXVHPDQ\D.WLYLWLHVWKDWD.WDVKXEVDQGHYHQGULYHUVRIPHWURSROLWDQH.RQRPLHVPDNLQJ.LWLHVLPSRUWDQWIDUEH\RQGWKHLUVWDWL.SHU.HQWDJHRIDVVHWVDQGSURGX.WLYLW\

    &LW\(.RQRPLHVDUH'LVSURSRUWLRQDWHO\&RPSRVHGRIH\7\SHVRI(.RQRPL.$.WLYLW\

    7KHIROORZLQJ.KDUWVVKRZWKHSHU.HQWDJHRIEURDGH.RQRPL.VH.WRUVOR.DWHGLQ.LWLHVDV.RPSDUHGWRVXEXUEV7KH\DOVRLQGL.DWHD.LW\PXOWLSOLHUWKLVWLPHLQGL.DWLQJWKHH[WHQWWRZKL.KWKH.LWLHVH.RQRP\LVGLVSURSRUWLRQDWHO\LQWKDWVH.WRU

    &LWLHV'LVSURSRUWLRQDWHO\+RXVHH\1HZ(.RQRP\$.WLYLWLHV

    7&8 ),5( 6HUYL.HV +LJK7H.K &RQVWUX.WLRQ 0DQXID.WXULQJ :KROHVDOH 5HWDLO

    &LW\(PSOR\PHQWDVRI06$7RWDO

    &LW\0XOWLSOLHU

    1HZ(.RQRP\ 2OG(.RQRP\

    )LJXUH

    ,QWHUHVWLQJO\.LW\H.RQRPLHVKDYHOHVVWKDQWKH06$DYHUDJHSHU.HQWDJHRIROGH.RQRP\D.WLYLW\)RUH[DPSOHPDQXID.WXULQJLVRIWKHPHWURSROLWDQH.RQRP\RYHUDOOEXWRQO\RIWKH.LW\

    H.RQRP\.UHDWLQJDOHVVWKDQXQLW\.LW\PXOWLSOLHURI

  • 8/2/2019 Cities and Economic Prosperity

    15/26

    5:9HQWXUHVZLWK6KRUHEDQN

    ,QGUDPDWL..RQWUDVWWKHH.RQRPL.D.WLYLW\RIWKH.LWLHVLV.RQ.HQWUDWHGLQZKDWDUHJHQHUDOO\D..HSWHGDVWKHPRVWLPSRUWDQWDQGKLJKHVWJURZWKVH.WRUVWRWKHQHZH.RQRP\&LWLHVKDYHDSURSRUWLRQDODPRXQWRIKLJKWH.KQRORJ\D.WLYLW\DQGVLJQLIL.DQWO\KLJKHUWKDQH[SH.WHG.RQ.HQWUDWLRQLQ),5(6HUYL.HVDQG7&8WUDQVSRUWDWLRQ.RPPXQL.DWLRQVDQGXWLOLWLHV:KLOH7&8IRUH[DPSOH.RQVWLWXWHVRIPHWURSROLWDQH.RQRPLHVRYHUDOOLW.RQVWLWXWHVRI.LW\H.RQRPLHV.UHDWLQJD.LW\PXOWLSOLHURILQGL.DWLQJWKHGLVSURSRUWLRQDWH.RQ.HQWUDWLRQRI.LW\H.RQRPLHVLQWKLVVH.WRU

    6XEXUEDQ(.RQRPL.%DVH

    2OG(.RQRP\

    1HZ(.RQRP\

    )LJXUH

    /RRNLQJDWWKLVGDWDLQDGLIIHUHQWZD\WKH.LWLHVKDYHRIWKHLUH.RQRPL.D.WLYLW\LQQHZH.RQRP\VH.WRUV.RPSDUHGWRIRUWKHVXEXUEV

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

    &LW\(.RQRPL.%DVH2OG

    (.RQRP\

    1HZ(.RQRP\

  • 8/2/2019 Cities and Economic Prosperity

    16/26

    5:9HQWXUHVZLWK6KRUHEDQN

    :DJHV$UH+LJKHUDQG*URZLQJ)DVWHULQ&LWLHV

    &LWLHV 6XEXUEV

    $YJ:DJH *URZWKLQ:DJHV

    )LJXUH

    $QRWKHU.RPSHOOLQJLQGL.DWRURIWKHH[WHQWWRZKL.K.LWLHVDUHKRXVLQJSDUWL.XODUO\LPSRUWDQWW\SHVRIH.RQRPL.D.WLYLW\LVWKDWZDJHVDQGZDJHJURZWKDUHKLJKHULQ.LWLHV)LQDOO\WKHGLVSURSRUWLRQDWHOHYHORIEXVLQHVVIRUPDWLRQLQ.LWLHVVHHILJXUHSURYLGHVDQRWKHUH[DPSOHRINH\H.RQRPL.D.WLYLW\.RQ.HQWUDWHGLQ.LWLHV

    &LWLHVDUH+XEVIRU0HWURSROLWDQ$UHDV

    1RWRQO\DUH.LW\H.RQRPLHV.RQ.HQWUDWHGLQPDQ\RIWKHPRVW.ULWL.DOVH.WRUV7KH\DUHDOVR.RQ.HQWUDWHGLQVH.WRUVRQZKL.KPHWURSROLWDQH.RQRPLHVSDUWL.XODUO\GHSHQG,QRWKHUZRUGV.LWLHVDOVRGLVSURSRUWLRQDWHO\KRXVHVRPHW\SHVRILQVWLWXWLRQVRULQIUDVWUX.WXUHWKDWPDNHWKHPWKHH.RQRPL.KXEVRIWKHLUPHWURSROLWDQDUHDV)HDWXUHVUDQJLQJIURPPXVHXPVWRKRVSLWDOVKDYHEHHQ.LWHGLQKLJKOLJKWLQJYDULHGKXEUROHVIRU.LWLHVDVLGHDDQGLQQRYDWLRQ.HQWHUV.RUSRUDWH.RPPDQG.HQWHUVILQDQ.LDO.HQWHUVNH\VRXU.HVRILQIUDVWUX.WXUHRURI.XOWXUDODPHQLWLHV

  • 8/2/2019 Cities and Economic Prosperity

    17/26

    5:9HQWXUHVZLWK6KRUHEDQN

    0XVHXPVERWDQL.DO]RRORJL.DOJDUGHQV

    (GX.DWLRQDOVHUYL.HV

    /HJDO6HUYL.HV

    +HDOWK6HUYL.HV

    'HSRVLWRU\LQVWLWXWLRQV

    ,QVXUDQ.H&DUULHUV

    &RPPXQL.DWLRQ

    $LU7UDQVSRUWDWLRQ

    +XE)XQ.WLRQVRI&LWLHV

    6XEXUEDQRI7RWDO06$(PSOR\PHQW

    &LW\RI7RWDO06$(PSOR\PHQW

    )LJXUH

    &LWLHVGRLQID.WSURYLGHDIDUJUHDWHUVKDUHRINH\IXQ.WLRQV.HQWUDOWRWKHLUPHWURSROLWDQH.RQRPLHVWKDQWKHLUVXEXUEV+RVSLWDOVDQGXQLYHUVLWLHVWUDQVSRUWDWLRQDQG.RPPXQL.DWLRQVLQIUDVWUX.WXUHRIIL.HVSD.HVHH)LJXUHDQGILQDQ.LDOVHUYL.HVDOODUH.RQ.HQWUDWHGLQ.LWLHVDQGVHUYHWKHLUZLGHUPHWURSROLWDQDUHDV

    +RZHYHUWKHNH\SRLQWZLWKUHVSH.WWR.LWLHVDVKXEVLVQRWUHDOO\KRZELJWKHLUVKDUHLVEXWUDWKHUWKHVSH.LDOUROHSOD\HGE\WKHD.WLYLWLHV7KLVLVDJURVVO\VLPSOLILHGYHUVLRQRIDWKHPHDPSO\GHPRQVWUDWHGLQWKHQHZH.RQRPL.JHRJUDSK\HJUXJPDQ&LWLHVDUHLPSRUWDQWLQPDQ\ZD\VWKDWGDWDPD\QRWIXOO\UHYHDOHYHQLIWKHLUH.RQRPL.VKDUHZHUHQRWGRPLQDQWWKH\.RXOGVWLOOEH

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

  • 8/2/2019 Cities and Economic Prosperity

    18/26

    5:9HQWXUHVZLWK6KRUHEDQN

    &LWLHVDUH'ULYHUVRI0HWURSROLWDQ(.RQRPLHV

    6RSKLVWL.DWHGPRGHOLQJGRQHIRUWKH.LW\RI&KL.DJRVXJJHVWVWKDW.LW\H.RQRPLHVLQID.WWUDQVODWHLQWRDQGGULYHPHWURSROLWDQH.RQRPLHVPX.KPRUHWKDQWKHRWKHUZD\DURXQG,QRWKHUZRUGVVXEXUEVPD\EHPRUHGHSHQGDQWRQWKHLU.HQWUDO.LWLHVWKDQ.LWLHVRQWKHLUVXEXUEV

    0XOWLSOLHU(IIH.W

    )LJXUH

    :KHQDGROODURIDGGLWLRQDOH.RQRPL.D.WLYLW\LVJHQHUDWHGLQWKH&LW\RI&KL.DJRRILWVULSSOHRUPXOWLSOLHUHIIH.WR..XUVLQWKHVXEXUEV2QWKHRWKHUKDQGLIVXEXUEDQD.WLYLW\H[SDQGVWKHVDPHDPRXQWRQO\RIWKHPXOWLSOLHUD.WLYLW\R..XUVLQWKH&LW\,QRWKHUZRUGV.LWLHVDUHDOVR.RQWULEXWLQJGLVSURSRUWLRQDWHO\WRWKHLUVXEXUEV

    &RQVLGHULQJWKHHDUOLHUGDWDWKLVUHVXOWLVQRWVXUSULVLQJWKDW.LWLHVKDYHPRUHDQGKLJKHUJURZWKQHZH.RQRP\LQGXVWULHV.RPELQHGZLWKKDYLQJPRUHVH.WRUVZKL.KD.WDVKXEVPD\H[SODLQZK\

    WKH\DUHGULYHUVRIPHWURSROLWDQH.RQRPLHVDVZHOO

    &LW\

    6XEXUE

  • 8/2/2019 Cities and Economic Prosperity

    19/26

    5:9HQWXUHVZLWK6KRUHEDQN

    ,97DNLQJ$&ORVHU/RRN7KH6XEXUEV6WLOO0DWWHU

    5HJLRQDOLVP&LWLHVDQG6XEXUEVDUH2QH(.RQRPL.8QLW

    ([DPLQLQJWKHUHODWLRQVKLSRI.LW\DQGVXEXUEDQH.RQRPLHVOHDGVWRDEURDGHU.RQ.OXVLRQWKDWWKH\DUHLQWHUWZLQHG7KHLPSRUWDQWSRLQWPD\QRWEHZKL.KLVJUHDWHURUGULYHVWKHRWKHUEXWWKDWWKH\DUHLQWHUGHSHQGHQW,IVXEXUEDQH.RQRPLHVDUHRIWHQGULYHQE\.LWLHV.LWLHVQHHGWKHLUVXEXUEVWRR

    7KH(.RQRPLHVRI&LWLHVDQG6XEXUEV0RYHLQWDQGHPQRWLQ2SSRVLWLRQ

    7HVWLQJWKHWKHVLVWKDWWKHH.RQRPLHVRI.LWLHVDQGVXEXUEVDUHLQWHUGHSHQGHQWUHTXLUHVDQRQO\VOLJKWO\PRUH.RPSOH[ORRNDWWKHGDWD,IWKH\DUHLQWHUGHSHQGHQWRQHZRXOGH[SH.WWKHLUZDJHVWR.RUUHODWHPRYHWRJHWKHUVX.KWKDWLID.LW\LVGRLQJZHOOLWVD..RPSDQ\LQJVXEXUEVDUHGRLQJZHOODQGYL.HYHUVD

    $YHUDJH$QQXDO:DJHV

    &LW\

    6XEXUE

    &RUUHODWLRQVLJQLIL.DQW

    DWWKHOHYHOWZRWDLOHG

    )LJXUH

    ,QID.WDV.DWWHUSORWRIDYHUDJHDQQXDOZDJHVIRUWKHODUJHVW.LWLHVDQGWKHLUVXEXUEVHD.KGRWLQ)LJXUHUHSUHVHQWVRQH.LW\VXEXUESDLUVKRZVD.RPSHOOLQJDQGKLJKO\VWDWLVWL.DOO\VLJQLIL.DQWS.RUUHODWLRQ:KLOHQRWDGGUHVVLQJ.DXVDWLRQWKLVHYLGHQ.HVWURQJO\VXJJHVWVWKDWWKHH.RQRPL.IRUWXQHVRI.LWLHVDQGVXEXUEVPRYHLQWDQGHP6LPLODUDQDO\VLVRIZDJHWUHQGVZKLOHQRW

    DVGUDPDWL.DOVRGHPRQVWUDWHGDSRVLWLYH.RUUHODWLRQ

  • 8/2/2019 Cities and Economic Prosperity

    20/26

    5:9HQWXUHVZLWK6KRUHEDQN

    +LJK7H.K-REVDVD3URSRUWLRQRI$OO-REV

    &LW\

    6XEXUEV

    &RUUHODWLRQVLJQLIL.DQW

    DWWKHOHYHOWZRWDLOHG

    )LJXUH

    7RIXUWKHUDQDO\]HZKHWKHU.LWLHVDQGWKHLUVXEXUEVPRYHLQWDQGHPZH.KRRVHDYDULDEOHWKDWPLJKWPRUH.ORVHO\UHODWHWRIXWXUHH.RQRPL.D.WLYLW\WH.KQRORJ\HPSOR\PHQW7KHTXHVWLRQLVZKHWKHUSDUWL.XODU.LWLHVDQGWKHLUVXEXUEVWHQGWRVX..HHGWRJHWKHURU.RPSHWHZLWKHD.KRWKHUIRUWKHWH.KQRORJ\VH.WRU$JDLQDVWDWLVWL.DOO\VLJQLIL.DQW.RUUHODWLRQDSSHDUV.LWLHVDQGWKHLUVXEXUEVWHQGWRVX..HHGRUIDLOWRJHWKHULQWKLV.ULWL.DOVH.WRU

    /LNHLWRUQRW.LWLHVDQGVXEXUEVDSSHDUWREHV\PELRWL.LQH[WUL.DEO\OLQNHGDVSDUWRIUHJLRQDOH.RQRPLHV

    (.RQRPLHVDUH5HJLRQDO

    3DUWL.XODUO\LQWKH.RQWH[WRIDJOREDOH.RQRP\ZLWKIUHHWUDGHLQWHUQDWLRQDO.DSLWDOPDUNHWVDQGWKHUHYROXWLRQLQ.RPPXQL.DWLRQVDQGLQIRUPDWLRQWH.KQRORJLHVPDQ\KDYHSHUVXDVLYHO\DUJXHGWKDWUHJLRQVQRW.LWLHVRUVXEXUEVDUHWKHXQLWVRIH.RQRPL..RPSHWLWLRQ$VWKHGDWDDERYHVXJJHVWVUHJLRQVDUHWKHJHRJUDSKL.DQGH.RQRPL.XQLWVLQZKL.KLQGXVWULDO.OXVWHUVJRRGVDQGVHUYL.HVDQGODERURSHUDWH:LWKWKHH[.HSWLRQRIWKHLPSD.WRIOR.DOWD[HVDQGUHJXODWLRQH.RQRPL.D.WLYLW\GRHVQRWREH\SROLWL.DOERXQGDULHV

    ,QGHHGXQGHUVWDQGLQJ.LWLHVDQGVXEXUEVDVSDUWRIXQLILHGUHJLRQDOH.RQRPLHVKDVIXUWKHULPSOL.DWLRQV7KHJOREDOH.RQRP\LVLQ.UHDVLQJO\RUJDQL]HGDURXQGXUEDQUHJLRQV.RPSRVHGRIUHJLRQDOQHWZRUNVRI.LWLHVOLQNHGE\WUDGHDQG.RPPXQL.DWLRQV([DPLQLQJWKLVSKHQRPHQRQZRUOGZLGHLWKDVEHHQDUJXHGWKDWXUEDQSROL.\.DQQRORQJHUEHVLPSO\XQGHUVWRRGDVDVXEVHWRIGRPHVWL.SROL.\DVWKHUROHRIUHJLRQDOH.RQRPLHVLQGLUH.WO\SDUWL.LSDWLQJLQJOREDOH.RQRPLHVEH.RPHV.OHDUHUQDWLRQDOJRYHUQPHQWVKDYHDQHYHQELJJHUVWDNHLQHQVXULQJWKH.RPSHWLWLYHQHVVRIWKHLU.LWLHV

  • 8/2/2019 Cities and Economic Prosperity

    21/26

    5:9HQWXUHVZLWK6KRUHEDQN

    &RQ.OXVLRQ

    )R.XVLQJRQWKHDVVHWVUDWKHUWKDQWKHGHIL.LHQ.LHVRI.LWLHVUHYHDOVYLEUDQWSURGX.WLYHSOD.HVDWWKH.RUHRIRXUQDWLRQDOH.RQRP\7KHDVVHWVRI.LWLHVSUHVHQWHQRUPRXVLQYHVWPHQWRSSRUWXQLWLHVDVYHKL.OHVIRUUHJLRQDODQGQDWLRQDOH.RQRPL.JURZWK7KHQDWLRQDOH.RQRP\LVLQ.UHDVLQJO\.RQ.HQWUDWHGLQPHWURSROLWDQDUHDVZKRVH.RUH.LWLHVKRXVHDVXEVWDQWLDOSRUWLRQRIDVVHWV)XUWKHUPRUHWKHH.RQRPLHVRI.LWLHVDUH.RQ.HQWUDWHGLQSDUWL.XODUO\.ULWL.DODQGKLJKJURZWK

    LQGXVWULHV7KH\D.WDVKXEVDQGGULYHUVRIUHJLRQDOH.RQRPLHVZLWKZKL.KWKHLUIDWHVDUHZKROO\LQWHUWZLQHG,IZHZDQWWRVWUHQJWKHQWKHH.RQRPLHVRIRXUUHJLRQVDQGRXUQDWLRQWKH.LWLHVPD\EHWKHPRVWLPSRUWDQWOHYHUDJHSRLQW

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

    SRVVLELOLW\RIPX.KPRUHHIIL.LHQWDQGSURGX.WLYHH.RQRPL.GHYHORSPHQWIRUWKH.RXQWU\DVDZKROH

  • 8/2/2019 Cities and Economic Prosperity

    22/26

    5:9HQWXUHVZLWK6KRUHEDQN

    $SSHQGL[,'DWD6RXU.HV

    'DWD(OHPHQW 6RXU.H

    )LJXUH$0HWURSROLWDQ1DWLRQ3HRSOH$VVHWV

    3RSXODWLRQ &HQVXV%XUHDX(VWLPDWHVDXWKRUV

    .DO.XODWLRQV

    *URZWKLQ3RSXODWLRQ &HQVXV%XUHDX(VWLPDWHVDXWKRUV.DO.XODWLRQV

    (PSOR\PHQW 6WDWHDQG0HWURSROLWDQ$UHD'DWDERRN'DWDIRU06$VDUHIRU86

    7RWDO

    +RXVLQJ6WR.N $PHUL.DQ+RXVLQJ6XUYH\DXWKRUV.DO.XODWLRQV

    *'3 ([WUD.WLQJ*URVV5HJLRQDO3URGX.WIRU0HWURSROLWDQ$UHDV3UHSDUHGIRUWKLV5HSRUWE\*HRIIUH\+HZLQJVDQG-RKQ6HR5HJLRQDO(.RQRPL.$SSOL.DWLRQV/DERUDWRU\5($/,Q.OXGHVWRS06$VRQO\,Q.OXGLQJDOO06$VZRXOGLQ.UHDVHWKHSHU.HQWDJH

    )LJXUH$0HWURSROLWDQ1DWLRQ%X\LQJ3RZHU3URGX.WLRQ

    $JJUHJDWH3HUVRQDO,Q.RPH $XWKRUV.DO.XODWLRQVEDVHGRQGDWDIURP&$&,

    &RQVXPHU([SHQGLWXUHV $XWKRUV.DO.XODWLRQVEDVHGRQGDWDIURP&$&,

    7D[3D\PHQWV $XWKRUV.DO.XODWLRQVEDVHGRQ6DWLVWL.VRI,Q.RPH=LS&RGH6WDWLVWL.V,56

    7RWDO(.RQRPL.*URZWK +8'6WDWHRIWKH&LWLHVUHSRUW

    0DQXID.WXULQJ9DOXH$GGHG (GZDUG+LOO&DO.XODWHGLQDVVR.LDWLRQZLWK7KH8UEDQ&HQWHU&OHYHODQG6WDWH8QLYHUVLW\ZLWKGDWDIURPWKH%XUHDXRI(.RQRPL.$QDO\VLV5HJLRQDO(.RQRPL.,QIRUPDWLRQ6\VWHPDQG$QQXDO*URVV6WDWH3URGX.W7DEOHV

  • 8/2/2019 Cities and Economic Prosperity

    23/26

    5:9HQWXUHVZLWK6KRUHEDQN

    $SSHQGL[,'DWD6RXU.HV.RQWLQXHG

    'DWD(OHPHQW 6RXU.H

    )LJXUH&LWLHVDUHDODUJHSRUWLRQRIPHWURSROLWDQH.RQRPLHV

    3RSXODWLRQ $XWKRUV.DO.XODWLRQVIURP&$&,GDWDIRU+8'62&.LWLHV

    $JJUHJDWH,Q.RPH $XWKRUV.DO.XODWLRQVIURP&$&,GDWDIRU+8'62&.LWLHV

    +RXVLQJ6WR.N $PHUL.DQ+RXVLQJ6XUYH\$XWKRUV.DO.XODWLRQV

    &RQVXPHU6SHQGLQJ $XWKRUV.DO.XODWLRQVIURP&$&,GDWDIRU+8'62&.LWLHV

    (PSOR\PHQW$OO,QGXVWULHV &DO.XODWHGE\WKHDXWKRUVIURP+8'V6WDWHRIWKH&LWLHV'DWD6\VWHP&RXQW\%XVLQHVV

    3DWWHUQV6SH.LDO([WUD.W7RWDO%XVLQHVV(VWDEOLVKPHQWV &DO.XODWHGE\WKHDXWKRUVIURP+8'V6WDWH

    RIWKH&LWLHV'DWD6\VWHP&RXQW\%XVLQHVV3DWWHUQV6SH.LDO([WUD.W

    2IIL.H6SD.H 7RS06$VRQO\GDWDIURP%OD.NV*XLGHWR2IIL.H/HDVLQJDVUHSRUWHGLQ5REHUW/DQJ2IIL.H6SUDZO7KH(YRORYLQJ*HSJUDSK\RI%XVLQHVV7KH%URRNLQJV,QVWLWXWLRQV&HQWHURQ8UEDQDQG0HWURSROLWDQ3ROL.\

    )LJXUH$JJUHJDWH,Q.RPHRI7RS&LWLHVYV*'3RI2WKHU&RXQWULHV

    $JJUHJDWHLQ.RPHIRU86&LWLHV $XWKRUV.DO.XODWLRQVIURP&$&,GDWDIRU+8'62&.LWLHV

    *'3IRUDOO.RXQWULHV ,0)

    )LJXUH7RS&LWLHV&RQWULEXWH'LVSURSRUWLRQDWH3HU.HQWDJHRI1HZ%XVLQHVV6WDUWV

    1HZ)LUPV 'XQDQG%UDGVWUHHW%XVLQHVV6WDUWV5H.RUG

    1HZ(PSOR\HHV 'XQDQG%UDGVWUHHW%XVLQHVV6WDUWV5H.RUG

  • 8/2/2019 Cities and Economic Prosperity

    24/26

    5:9HQWXUHVZLWK6KRUHEDQN

    $SSHQGL[,'DWD6RXU.HV.RQWLQXHG

    'DWD(OHPHQW 6RXU.H

    )LJXUH7RS&LWLHV0DNHH\&RQWULEXWLRQV

    $JJUHJDWH,Q.RPH $XWKRUV.DO.XODWLRQVIURP&$&,GDWD

    IRU+8'62&.LWLHV

    &RQVXPHU([SHQGLWXUHV $XWKRUV.DO.XODWLRQVIURP&$&,GDWDIRU+8'62&.LWLHV

    6H.XULWLHVDQG&RPPRGLWLHV%URNHUV

    %XVLQHVV6HUYL.HV

    /HJDO6HUYL.HV

    (GX.DWLRQDO6HUYL.HV

    (QJLQHHULQJDQG0DQDJHPHQW6HUYL.HV

    &DO.XODWHGE\WKHDXWKRUVIURP+8'V6WDWHRIWKH&LWLHV'DWD6\VWHP&RXQW\%XVLQHVV

    3DWWHUQV6SH.LDO([WUD.W1XPEHUVUHSUHVHQWSHU.HQWDJHRIHPSOR\PHQWLQWKHLQGXVWU\

    )LJXUH7RS&LWLHV$WWUD.W0RVW)RUHLJQ7RXULVPWR86

    7RWDO9LVLWV $XWKRUV.DO.XODWLRQVRIGDWDIURP86'HSDUWPHQWRI&RPPHU.H,7$7RXULVP,QGXVWULHV([.OXGHVYLVLWVIURP&DQDGDDQG0H[L.R

    )LJXUH3HU.HQWRI7RWDO86([SRUWV

    ([SRUW6DOHV 'DWDSURYLGHGE\*HRIIHU\+HZLQJV5($/

    )LJXUH3HU.HQWRI5HDO2XWSXW3KDUPD.HXWL.DOV

    5HDO2XWSXW6,& $XWKRUV.DO.XODWLRQVIURPGDWDSUHVHQWHGE\0LOLNHQ,QVWLWXWH$PHUL.DV+LJK7H.K(.RQRP\

    )LJXUH&LWLHV'LVSURSRUWLRQDWHO\+RXVHH\1HZ(.RQRPL.$.WLYLWLHV

    $OO'DWD &DO.XODWHGE\WKHDXWKRUVIURP+8'V6WDWHRIWKH&LWLHV'DWD6\VWHP&RXQW\%XVLQHVV

    3DWWHUQV6SH.LDO([WUD.W&LW\PXOWLSOLHU ,QGXVWU\DVSHU.HQWRIWRWDO.LW\HPSOR\PHQW

    GLYLGHGE\LQGXVWU\DVDSHU.HQWRIWRWDO06$HPSOR\PHQW'DWDVXPPHGIRUDOO.LWLHVDQG06$VLQWKHGDWDVHW

  • 8/2/2019 Cities and Economic Prosperity

    25/26

    5:9HQWXUHVZLWK6KRUHEDQN

    $SSHQGL[,'DWD6RXU.HV.RQWLQXHG

    'DWD(OHPHQW 6RXU.H

    )LJXUH&LW\(.RQRPL.%DVH6XEXUEDQ(.RQRPL.%DVH

    $OO'DWD &DO.XODWHGE\WKHDXWKRUVIURP+8'V6WDWHRIWKH&LWLHV'DWD6\VWHP&RXQW\%XVLQHVV3DWWHUQV6SH.LDO([WUD.W

    )LJXUH:DJHVDUH+LJKHUDQG*URZLQJ)DVWHULQ&LWLHV

    $OO'DWD 6WDWHRIWKH1DWLRQV&LWLHV+8''DWDUHIHUWRWRS.LWLHVDQGWKHLUVXEXUEV

    )LJXUH+XE)XQ.WLRQVRI&LWLHV

    $OO'DWD &DO.XODWHGE\WKHDXWKRUVIURP+8'V6WDWHRIWKH&LWLHV'DWD6\VWHP&RXQW\%XVLQHVV

    3DWWHUQV6SH.LDO([WUD.W'DWDUHIHUWR.LW\DQGVXEXUEVKDUHRIWRWDO06$HPSOR\PHQWE\LQGXVWU\

    )LJXUH0XOWLSOLHU(IIH.W

    &LW\VXEXUEPXOWLSOLHUV 'DWDDQGPRGHOGHYHORSHGE\*HRIIHU\ +HZLQJV5($/

    )LJXUH$YHUDJH$QQXDO:DJHV

    $YHUDJHZDJHDOOLQGXVWULHV &DO.XODWHGE\WKHDXWKRUVIURP+8'V6WDWHRIWKH&LWLHV'DWD6\VWHP&RXQW\%XVLQHVV3DWWHUQV6SH.LDO([WUD.W)RU06$VLQZKL.K

    PRUHWKDQRQH.HQWUDO.LW\DSSHDUVLQWKHGDWDEDVHRQO\WKHODUJHVW.HQWUDO.LW\LVSORWWHG

    )LJXUH+LJK7H.K-REVDVD3URSRUWLRQRI$OO-REV

    +LJK7H.K(PSOR\PHQW7RWDO(PSOR\PHQW &DO.XODWHGE\WKHDXWKRUVIURPGDWDSUHVHQWHGLQ6WDWHRIWKH&LWLHV$SSHQGL[%+8')RU06$VLQZKL.KPRUHWKDQRQH.HQWUDO.LW\DSSHDUVLQWKHGDWDEDVHRQO\WKHODUJHVW.HQWUDO.LW\LVSORWWHG

    6WDWHRIWKH&LWLHV'DWD6\VWHP

    'DWDIRUVHYHUDORIWKH.KDUWVLQWKLVSDSHUZHUHREWDLQHGIURPWKH6WDWHRIWKH&LWLHV'DWD6\VWHP62&'6.UHDWHGE\+8'62&'6.RQWDLQVGDWDRQWKHWRS.HQWUDO.LWLHVRXWRIDERXW.LWLHVGHVLJQDWHGDV.HQWUDO.LWLHVRI06$V

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

  • 8/2/2019 Cities and Economic Prosperity

    26/26

    $VXVHGWKURXJKRXWWKLV5HSRUWPHWURSROLWDQDUHDVUHIHUVWRWKH6WDQGDUG0HWURSROLWDQ6WDWLVWL.DO$UHDDV

    GHILQHGE\WKH&HQVXV%XUHDX6HH$SSHQGL[,IRUIXUWKHUGHWDLODQGGDWDVRXU.HVRQDOORIWKH.KDUWVEHORZ

    ,QID.WXVLQJDJJUHJDWHLQ.RPHRIWKH.LWLHVUHODWLYHWR*'3RIRWKHU.RXQWULHVLIDQ\WKLQJXQGHUVWDWHVWKHUHODWLYHVL]HRIWKH.LW\H.RQRPLHV,IZHKDGGDWDIRU.LW\*'3ZKL.KWRRXUNQRZOHGJHGRQRWH[LVWWKH.LWLHVZRXOGDOPRVW.HUWDLQO\PRYHXSHYHQKLJKHULQWKHUDQNLQJ)RUH[DPSOHQDWLRQDOO\LQ.RPHLV

    DERXWRI*'3

    6HHHJ6DVNLD6DVVHQ&LWLHVLQD:RUOG(.RQRP\3LQH)RUJH3UHVVJOREDO.LWLHVHPHUJLQJDVNH\VLWHVIRUILQDQ.HVSH.LDOL]HGVHUYL.HVDQG.RUSRUDWH.RPPDQGIXQ.WLRQV

    6HHHJ(GZDUG/*ODHVHU-HGRONRDQG$OEHUW6DL]&RQVXPHU&LW\1DWLRQDO%XUHDXRI(.RQRPL.5HVHDU.KVX..HVVRI.LWLHVLQ.UHDVLQJO\GHSHQGVRQUROHDV.HQWHUVRI.RQVXPSWLRQ.RQVXPHU.LWLHVRIIHUDPHQLWLHVDWWUD.WLQJWKHPRVWVRXJKWDIWHUZRUNHUVDQGILUPVLQ.UHDVLQJO\IROORZWKLVODERUIRU.H.ODVVLI\LQJ.LWLHVLQWRUHVXUJHQWGHQVHROGHUGHQVHDQGHGJH.LWLHV

    7KHHDUOLHUPXOWLSOLHULQ6H.WLRQ,VKRZHGWKDW.LW\H.RQRPL..RQWULEXWLRQVZHUHGLVSURSRUWLRQDWHWR.LW\SRSXODWLRQWKLVRQHLQVWHDGVKRZVWKDW.LW\H.RQRPL.D.WLYLW\LVZHLJKWHGWRZDUGV.HUWDLQW\SHVRIVH.WRUV,WVKRXOGEHQRWHGWKDWWKHQHZH.RQRP\.RQ.HQWUDWLRQVEHORZZHOODERYH.LW\SRSXODWLRQSHU.HQWDJHVIXUWKHU.RQILUPWKH6H.WLRQ,GLVSURSRUWLRQDOLW\SRLQWDVZHOO

    6DVVHQ,ELG)UDQN0RXODHUW$OOHQ-6.RWW &LWLHV(QWHUSULVHVDQG6R.LHW\RQWKHHYHRIWKHVW&HQWXU\ 3LQWHU5RE$WNLQVRQ8UEDQ(.RQRPL.3URVSH.WVLQWKH1HZQRZOHGJH(.RQRP\3DSHUIRU&(2VIRU&LWLHV&RQIHUHQ.H2.WREHU*ODHVHU,ELG-RVHSK&RUWULJKW+HLNH0D\HU+LJK7H.K6SH.LDOL]DWLRQ$&RPSDULVRQRI+LJK7H.KQRORJ\&HQWHUV%URRNLQJ,QVWLWXWLRQ&HQWHURQ8UEDQ0HWURSROLWDQ3ROL.\-DQXDU\

    7KH.ODVVL.PRGHUQIRUPXODWLRQRIWKH.LW\VNH\UROHDVD.HQWHUIRULGHDVZDVRI.RXUVHE\-DQH-D.REVPRUHUH.HQWHYLGHQ.HLVVXPPDUL]HGLQ-DQL.H)DQQLQJ0DGGHQ-REV&LWLHVDQG6XEXUEVLQWKH*OREDO(.RQRP\$QQDOVRIWKH$PHUL.DQ$.DGHP\YRO1RYHPEHU

    )RUDQLQWHUHVWLQJLI.RPSOH[H[DPSOHVHH$QGUHZ)+DXJKZRXW5HJLRQDO)LV.DO&RRSHUDWLRQLQ0HWURSROLWDQ$UHDV$Q([SORUDWLRQ-RXUQDORI3ROL.\$QDO\VLVDQG0DQDJHPHQWYROQRSHQKDQ.HPHQWVWR.HQWUDO.LW\LQIUDVWUX.WXUHVLJQLIL.DQWO\LQ.UHDVHVXEXUEDQSURSHUW\YDOXHV@

    6HHIRUVLPLODUO\.RPSHOOLQJDQDO\VLVORRNLQJDWWUHQGVLQLQ.RPHZLWKPRUHGHWDLOHGH[SODQDWLRQRIWKH

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

    9RLWK'R6XEXUEVQHHG&LWLHV"-RXUQDORI5HJLRQDOV.LHQ.HYROQRS

    6HH7KHRGRUH+HUVKEHUJ5HJLRQDO&RRSHUDWLRQ6WUDWHJLHVDQG,Q.HQWLYHVIRU*OREDO&RPSHWLWLYHQHVVDQG8UEDQ5HIRUP1DWLRQDO&LYL.5HYLHZY6SULQJ6XPPHU6HHDOVR0L.KDHO6WHJPDQDQG0DUJHU\$XVWLQ7KH)XWXUHRI8UEDQ$PHUL.DLQWKH*OREDO(.RQRP\-RXUQDORIWKH$PHUL.DQ

    3ODQQLQJ$VVR.LDWLRQYQ6SULQJ([WHQVLYHDQGYDULHGZRUNRQLQGXVWULDO.OXVWHUVRWKHUW\SHVRIEXVLQHVV.OXVWHUVDQGDJJORPHUDWLRQ

    H.RQRPLHVJHQHUDOO\VHHIRUH[DPSOHWKHZRUNRI3LRUHDQG6DEOH0L.KDHO3RUWHU3DXOUXJPDQDQG1HG+LOOKLJKOLJKWLQJWKHH.RQRPL.YDOXHRIGHQVLW\DQG.RQ.HQWUDWLRQSDUWL.XODUO\LQWKHQHZH.RQRP\DOOIR.XVHVRQPHWURSROLWDQUHJLRQDOH.RQRPLHVH[SOL.LWO\DQGLPSOL.LWO\UH.RJQL]LQJWKHVHDVWKHUHOHYDQWH.RQRPL.XQLWV

    $QRWKHULQWHUHVWLQJH[DPSOHRIWKLVSKHQRPHQRQLVWKDWWKH2IIL.HRI0DQDJHPHQWDQG%XGJHWLVQRORQJHUORRNLQJDW06$VDVSROLWL.DOXQLWVEXWLQVWHDGDV8UEDQL]HG$UHDV

    -HDQ&ODXGH3\H:K\&LWLHV0DWWHUWRWKH:HDOWKRI1DWLRQV2(&'2EVHUYHU1RS