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Removing the Rust: Comparative Post-Industrial Revitalization in Buffalo, Cleveland, and Pittsburgh Scott Icholn As Duryea Old Dominion University

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Removing the Rust: Comparative Post-Industrial Revitalization in Buffalo, Cleveland, and Pittsburgh Scott Icholn As Duryea Old Dominion University Old Dominion University ODU Digital Commons Graduate Program in International Studies Theses & Graduate Program in International Studies Dissertations Spring 2015 Removing the Rust: Comparative Post-Industrial Revitalization in Buffalo, Cleveland, and Pittsburgh Scott icholN as Duryea Old Dominion University Follow this and additional works at: https://digitalcommons.odu.edu/gpis_etds Part of the Growth and Development Commons, Political Economy Commons, Political Science Commons, and the Urban Studies and Planning Commons Recommended Citation Duryea, Scott ..N "Removing the Rust: Comparative Post-Industrial Revitalization in Buffalo, Cleveland, and Pittsburgh" (2015). Doctor of Philosophy (PhD), dissertation, International Studies, Old Dominion University, DOI: 10.25777/3dpq-4x74 https://digitalcommons.odu.edu/gpis_etds/41 This Dissertation is brought to you for free and open access by the Graduate Program in International Studies at ODU Digital Commons. It has been accepted for inclusion in Graduate Program in International Studies Theses & Dissertations by an authorized administrator of ODU Digital Commons. For more information, please contact [email protected]. REMOVING THE RUST: COMPARATIVE POST-INDUSTRIAL REVITALIZATION IN BUFFALO, CLEVELAND, AND PITTSBURGH by Scott Nicholas Duryea B.A. May 2006, John Carroll University M.A. December 2009, East Carolina University M.A. July 2011, East Carolina University A Dissertation Submitted to the Faculty of Old Dominion University in Partial Fulfillment of the Requirements for the Degree of DOCTOR OF PHILOSOPHY INTERNATIONAL STUDIES OLD DOMINION UNIVERSITY March 2015 Approved by: David Earnest (Director) V) Simon Serfaty (Member) KwrrfFiler (Member) ABSTRACT REMOVING THE RUST: COMPARATIVE POST-INDUSTRIAL REVITALIZATION IN BUFFALO, CLEVELAND, AND PITTSBURGH Scott Nicholas Duryea Old Dominion University, 2015 Director: Dr. David Earnest This study seeks to understand the differences in post-industrial redevelopment among the cities of Buffalo, Cleveland, and Pittsburgh. Part of the so-called “rust belt,” these three cities experienced industrial decline from the 1960s through the 1980s, largely as a result of the economic globalization of heavy industry. Intensive manufacturing and output had come to a screeching halt, unemployment skyrocketed, outmigration ensued, and each metropolitan area faced formidable challenges to convert to service-oriented industries. Over the past twenty years, these cities, and the regions that encompass them, have begun to redevelop, although unevenly. At a glance, the Pittsburgh region appears to be regenerating better than Cleveland and Buffalo. How well has each city post­ industrialized? Why are there differences? I hypothesize that differences in the dependent variable—post-industrialization— can be partly explained by three independent variables—regulatory burden, size of service sector prior to deindustrialization, and capital accumulation. These three hypotheses are tested using a comparative and qualitative research design informed by the liberal institutionalist school of thought. The findings have implications for global deindustrialized cities struggling to post-industrialize. Ultimately, I find that Pittsburgh has economically outperformed its rust belt counterparts because of its lower regulatory burden, more robust service sector prior to deindustrialization, which insulated the region from the shock of the rapid decline of steel, and higher availability of venture capital. © 2015 Scott Nicholas Duryea. All rights reserved. I dedicate this dissertation to my family. To my parents, Dennis and Bonnie, neither of whom pressured me down any predetermined professional path, yet supported me whole­ heartedly in all my pursuits. To my wife, whose love, support, and encouragement during graduate school kept me going. To Crosby and Ziggy, my boys. And to Sofia Victoria, you will soon be with us. ACKNOWLEDGEMENTS I thank Dr. David Earnest, my dissertation advisor, for his guidance, constructive feedback, and encouragement throughout the writing process. I am also grateful for Dr. Simon Serfaty and Dr. Larry Filer for serving on my committee. I also thank Dr. Regina Karp and the Graduate Program in International Studies for providing me with financial assistance during my dissertation research. And I would be remiss if I did not thank Jan Nalaskowski, Ivan Medynskyi, Nikola Kovac, and Sandis Sraders for providing a social outlet during our doctoral studies. ABBREVIATIONS ACS American Community Survey BEA Bureau o f Economic Analysis BNMC Buffalo Niagara Medical Campus DIR Dividends, Interest, and Rent EIN Employer Identification Number GDP Gross Domestic Product MSA Metropolitan Statistical Area NAICS North American Industrial Classification System OECD Organisation for Economic Co-operation and Development PPP Public-Private Partnership SBA Small Business Administration SIC Standard Industrial Classification STEM Science, Technology, Engineering, Mathematics SUNY State University o f New York TNC Transnational Corporation USX U.S. Steel Corporation WLO Windows o f Location Opportunity TABLE OF CONTENTS Page LIST OF TABLES.........................................................................................................................x LIST OF FIGURES................................................................................................................... xiv Chapter I. INTRODUCTION............................................................................................................ 1 PURPOSE OF THE RESEARCH.....................................................................1 DECLINE IN AMERICAN MANUFACTURING........................................2 RISE OF THE TERTIARY SECTOR............................................................ 11 THE RUST BELT..............................................................................................15 OUTLINE OF THE STUDY........................................................................... 30 II. REVIEW OF THE LITERATURE............................................................................. 32 INTRODUCTION.............................................................................................32 DEINDUSTRIALIZATION, POST-INDUSTRIALISM, AND GLOBALIZATION............................................................................. 32 SPACE, PLACE, AND ECONOMIC GEOGRAPHY................................ 41 THE ROLES OF KNOWLEDGE, INNOVATION, AND ENTREPRENEURSHIP......................................................................50 PATH DEPENDENCE AND ECONOMIC ACTIVITY............................58 INSTITUTIONS AND REDEVELOPMENT.............................................. 63 CONCLUSION..................................................................................................75 III. RESEARCH DESIGN................................................................................................... 76 INTRODUCTION.............................................................................................76 QUALITATIVE VS. QUANTITATIVE....................................................... 76 CASE SELECTION.......................................................................................... 77 MEASUREMENT AND INDICATORS OF POST­ INDUSTRIALISM .............................................................................. 79 HYPOTHESES..................................................................................................82 CONTRIBUTION TO THE FIELD 83 IV. THE STATE OF POST-INDUSTRIALISM IN BUFFALO, CLEVELAND, AND PITTSBURGH.................................................................. 84 INTRODUCTION.............................................................................................84 POST-INDUSTRIALIZATION IN BUFFALO, CLEVELAND, AND PITTSBURGH...........................................................................84 THE FOUR DIMENSIONS OF POST-INDUSTRIALISM...................... 90 COMPLETING THE ECONOMIC PICTURE...........................................131 ix Page CONCLUSION................................................................................................ 146 V. GOVERNING WITHOUT HAMPERING: THE INFLUENCE OF FORMAL INSTITUTIONS AND REGULATORY BURDEN.....................148 INTRODUCTION...........................................................................................148 GOVERNMENT AND THE ECONOMY.................................................. 149 REGULATORY INDEX................................................................................156 TAX BURDEN AND COST OF LIVING.................................................. 187 DISCUSSION AND CONCLUSION...........................................................195 VI. PATH DEPENDENCE AND POST-INDUSTRIAL DEVELOPMENT 198 INTRODUCTION...........................................................................................198 PATH DEPENDENCE...................................................................................199 MANUFACTURING AND TERTIARY EMPLOYMENT BEFORE AND AFTER INDUSTRIAL DECLINE..................... 202 TERTIARY SECTOR EFFECTS ON POST-INDUSTRIAL RECOVERY.......................................................................................207 DISCUSSION AND CONCLUSION...........................................................213 VII. CAPITAL AND DEVELOPMENT.......................................................................... 217 INTRODUCTION.........................................................................................
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