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A Consumption Base Theory of Development: An Application to the Rural Cultural Economy

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  • Markusen, Ann
Abstract
Export base theory, which posits that overall regional growth is a function of external sales of locally produced goods and services, dominates economic development practice. But the consumption base can also serve as a growth driver, especially in small towns and rural areas. Local investments may induce residents to divert expenditures into local purchases, attract new and footloose residents and tourists, and revitalize aging town centers. A consumption base approach is not reducible to import substitution, but seeks to serve latent demand and alter the broad portfolio of goods and services purchased locally. I present the analytics for a consumption base theory and demonstrate how cultural investments prompt regional growth, emphasizing the role of artists as catalysts. Three types of arts and cultural investments are explored: artists' centers, artists' live/work spaces, and performing arts facilities, with examples from rural and small town settings. I conclude with rural cultural strategy recommendations.

Suggested Citation

  • Markusen, Ann, 2007. "A Consumption Base Theory of Development: An Application to the Rural Cultural Economy," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(1), pages 1-15, April.
    • Handle: RePEc:ags:arerjl:10164
    DOI: 10.22004/ag.econ.10164
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    Cited by:

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    2. Mark D. Partridge & Dan S. Rickman & Hui Li, 2009. "Who Wins From Local Economic Development?," Economic Development Quarterly, , vol. 23(1), pages 13-27, February.
    3. Riccardo Cappellin, 2016. "Innovation and investments in a regional cross-sectoral growth model: A change is needed in European cohesion policies," ERSA conference papers ersa16p991, European Regional Science Association.
    4. Sergey Ivanovich Gorbunov* & Irina Fedorovna Sukhanova & Mariya Yuryevna Lyavina, 2018. "Development Prospects of the Food Export Potential of Russia in Terms of Import Substitution," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 115-120:3.
    5. Philippe Poinsot & Jean-François Ruault, 2019. "Economic-base theory and highly-open economies: incorporating day-to- day mobility," Working Papers hal-02269336, HAL.
    6. Antoine Grandclement & Guilhem Boulay, 2021. "From the uneven de-diversification of local financial resources to planning policies: The residentialization hypothesis," Environment and Planning A, , vol. 53(6), pages 1454-1472, September.
    7. Ivan Turok, 2009. "The Distinctive City: Pitfalls in the Pursuit of Differential Advantage," Environment and Planning A, , vol. 41(1), pages 13-30, January.
    8. Ann Markusen, 2015. "Problem-driven Research in Regional Science," International Regional Science Review, , vol. 38(1), pages 3-29, January.
    9. Riccardo Cappellin, 2016. "Investments, balance of payment equilibrium and a new industrial policy in Europe," ERSA conference papers ersa16p931, European Regional Science Association.
    10. Allen J. Scott, 2012. "The Cultural Economy of Landscape and prospects for peripheral development in the twenty-first century: the case of the English Lake District," Chapters, in: Enrico Bertacchini & Giangiacomo Bravo & Massimo Marrelli & Walter Santagata (ed.), Cultural Commons, chapter 4, Edward Elgar Publishing.
    11. Gustavo Fernandes Souza & Ana Flávia Machado & Edson Paulo Domingues, 2019. "Economic impacts of the vale-cultura (culture voucher): a computable general equilibrium model," Textos para Discussão Cedeplar-UFMG 595, Cedeplar, Universidade Federal de Minas Gerais.
    12. Markusen, Ann, 2007. "An Arts-Based State Rural Development Policy," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(1), pages 1-3.
    13. Oriane Lafuente-Sampietro, 2021. "The multiplier effect of convertible local currencies : case study on two French schemes," Working Papers halshs-03324625, HAL.
    14. Evgeniy Kutsenko & Ekaterina Islankina & Alexey Kindras, 2018. "Smart by Oneself? An Analysis of Russian Regional Innovation Strategies within the RIS3 Framework," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 12(1), pages 25-45.
    15. Jessie Lerousseau, 2018. "Tentatives de réhabilitation de la théorie de la base : à la recherche des origines," Working Papers hal-01874818, HAL.
    16. Antoine Grandclement & Guilhem Boulay, 2021. "From The Uneven De-Diversification Of Local Financial Resources To Planning Policies: The Residentialization Hypothesis," Post-Print halshs-03322259, HAL.
    17. Guimarães, Maria Helena & Sousa, Carlos & Dentinho, Tomaz & Boski, Tomasz, 2014. "Economic base model for the Guadiana estuary, Portugal an application for Integrated Coastal Zone Management," Marine Policy, Elsevier, vol. 43(C), pages 63-70.
    18. André Torre & Frederic Wallet Wallet, 2013. "The role of proximity relations in regional and territorial development processes," ERSA conference papers ersa13p792, European Regional Science Association.
    19. Ann Markusen & Amy Glasmeier, 2008. "Overhauling and Revitalizing Federal Economic Development Programs," Economic Development Quarterly, , vol. 22(2), pages 83-91, May.
    20. Pascal Ricordel, 2024. "Domestic or export: What is basic at the NUTS 2 regional level? A spatial endogenous regional growth model applied in the EU," Growth and Change, Wiley Blackwell, vol. 55(1), March.
    21. Francis Aubert & Abdoul Diallo & Quentin Frère & Denis Lépicier & Stéphanie Truchet & Dominique Vollet, 2014. "Analyse économétrique de la croissance de l'économie présentielle en France," Working Papers hal-02516950, HAL.
    22. Delphine Guex, Olivier Crevoisier, 2017. "Post-industrial globalization and local milieus: A typology," Diskussionsschriften credresearchpaper15, Universitaet Bern, Departement Volkswirtschaft - CRED.
    23. Lei Xiong & Cheng-Lein Teng & Bo-Wei Zhu & Gwo-Hshiung Tzeng & Shan-Lin Huang, 2017. "Using the D-DANP-mV Model to Explore the Continuous System Improvement Strategy for Sustainable Development of Creative Communities," IJERPH, MDPI, vol. 14(11), pages 1-37, October.

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