Development Economics ECN4169 L, Madumarov Eldar

… economic development strategy that focuses on encouraging the formation of new companies that are locally based and will remain in the community and grow.

… legally defined entities formed by property and business owners, where an assessment or a tax is levied for capital or operating improvements, as a means of supplementing city funding. The district is created by the public law or ordinance but is administered by an entity responsible to the district’s members or to the local governing body. Some states author-ize non-governmental, non-profit corporations. Recent BID programs include economic and social development, transportation, parking management, and conversion of redeveloped commercial build-ings for residential use.

… entity that nurtures and supports young companies until they become viable, providing them with affordable space, technical and management support, equity and long-term debt financing, and employment. The three basic objectives in creating an incubator are (1) to spur technology-based development; (2) to diversify the local economy; and (3) to assist in community revitalization.

… traditional approach to economic development to entice companies to relocate or to set up a new branch plant or operation in a state or locality; often referred to as “smokestack chasing.”

… systematic effort designed to keep local companies content at their present locations which includes helping companies cope with changing economic conditions and internal company problems.

... developing the ability of a community-based neighborhood organization to effec-tively design economic development strategies through technical assistance, networks, conferences, and workshops.

… the originating and administrating body for the SBA 504 loans. The program provides long-term, fixed-rate financing to small businesses to acquire real estate, machinery, and equipment for the expansion of business or modernization of facilities.

…collocation of firms in the same or similar industries to foster interaction as a means of strengthening each other and enhancing the community’s competitive advantage.

…term used when comparing economies of regions. It is the economic advantage gained by one area over another due to the fact that it can produce a particular product more efficiently. More efficient production of one good means there is a higher opportunity cost to produce another. This is the concept that drives trade between economies. Inter-regional and international trade exploits the comparative advantages of economies. (See Absolute Advantage)

…compares alternative projects or plans to determine the least costly way to achieve desired goals. Usually, some index or point system is developed to measure the effectiveness of the proposal in meeting the goals and objectives.