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Kathleen Hurley The Melbourne story: an analysis of the city’s economy over the 2000s By Kathleen Hurley A thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy Victorian Institute of Strategic Economic Studies College of Business Victoria University Melbourne, Australia 2015 Abstract This thesis examines economic growth and change across the city of Melbourne over the 2000s. In the late 1970s to early 1980s, and again in the early 1990s, Melbourne was seen as having a bleak future, as a consequence of the deindustrialisation occurring in the city throughout the late twentieth century. However, Melbourne grew rapidly at the start of the twenty-first century, renewing its profile globally and attracting population. This thesis examines the factors behind the rise of Greater Melbourne over the 2000s, and specifically the rapid revival of the central city area of Melbourne. The study assesses the relevance of economic geography theories (the Global Cities hypothesis, the World City Network (WCN) and agglomeration economies) in relation to Melbourne’s economic growth. Globalisation related theories concerning knowledge cities and workers are also considered. A diverse range of variables are examined in the study, including comparisons of population growth rates, changing employment, business location and occupation patterns, with an analysis of policy decisions made at local and state levels of government regarding the activities, infrastructure and marketing of the central city area. The study also examines national level policy decisions made regarding skilled migration and higher education, reflecting broader trends towards the need for knowledge workers in the economy. The results of this analysis confirm the pivotal role of the central city area in the rise of Greater Melbourne, and concludes that the growth of activity can be only partly explained by economic geography related theories connecting cities to globalisation. More important for Melbourne were the policy decisions made from the 1980s onwards on the role of infrastructure and promotion regarding the central city. More important still was Melbourne’s transformation to a knowledge city, featuring an economy increasingly comprised of knowledge workers. ii Student declaration I, Kathleen Hurley, declare that the PhD thesis entitled ‘The Melbourne story: an analysis of the city’s economy over the 2000s’ is no more than 100,000 words in length including quotes and exclusive of tables, figures, appendices, bibliography, references and footnotes. This thesis contains no material that has been submitted previously, in whole or in part, for the award of any other academic degree or diploma. Except where otherwise indicated, this thesis is my own work. 1 July 2015 Signature Date iii Acknowledgements There are a number of people I would like to thank for their support and assistance while I was researching and writing this thesis. First and foremost, I must thank Professor Bruce Rasmussen, who fatefully suggested some years ago now that I consider enrolling in a PhD at the Victorian Institute of Strategic Economic Studies (VISES), thankfully setting me on a new path of research direction and discovery away from where he found me, which was working in the Victorian public service. I made many friends amongst both the staff and students while working and studying at VISES, and I would like to acknowledge their camaraderie, which has contributed towards many happy and fun memories of my time there. I must also thank my Principal Supervisor, Professor Peter Sheehan, for his wise and considered recommendations and suggestions regarding this thesis. Tony Pensabene, my ex-manager and ongoing friend, has provided vital assistance throughout my years of study. I wish to thank Tony for helping me attain access to the Worksafe data and assistance with finding and contacting interviewees. Tony, in his erstwhile capacity as Manager of the Research and Policy Branch at DSDBI, also provided funding for various projects I worked on while I was employed part time at VISES, and we were all very grateful for this support. I wish to thank WorkSafe Victoria for allowing the use of their data in this study. I also want to thank the interviewees who so generously and helpfully gave their time and permission for me to use their responses in this piece of research. All my family and friends have been very encouraging while I have been undertaking my doctoral studies and I could not have completed this without their love and support. However, special mention must go to the Hurley clan itself. My late father Leo instilled a love of learning and intellectual curiosity amongst all his seven children and although I am but the first of them to finish a PhD, I know he would be very proud of me, as he would be very proud of all of us. To my brothers Matthew, Brian, Kieran, Gerard, Peter and James, their respective wives and partners, and ever growing number of children, thank you all so much for your ongoing love and help, in the many and varied forms this has taken over the years. Finally and most importantly, my mother Patricia has been a constant source of love, support and encouragement over the last four years as I have researched and written this thesis, as she has been all my life, and I would like to dedicate this to her. iv Table of Contents Part One ............................................................................................................................................... 1 Chapter One: Introduction ................................................................................................................... 2 1.1 Argument of this thesis ............................................................................................................. 2 1.2 Key theoretical context.............................................................................................................. 2 The city and the economy ........................................................................................................... 2 Globalisation and cities ............................................................................................................... 3 Key theories on cities and globalisation – Global Cities and the World City Network (WCN) . 3 1.3 Composition of the thesis .......................................................................................................... 6 1.4 Findings from the key research questions ................................................................................. 7 Data and methodology used in this study .................................................................................... 8 1.5 History of this research ............................................................................................................. 9 1.6 Interdisciplinary design ........................................................................................................... 10 1.7 Aim of this research ................................................................................................................ 10 Chapter Two: Literature Review ....................................................................................................... 11 2.1 The city and the economy ....................................................................................................... 11 2.2 Globalisation – a contested abstract concept ........................................................................... 12 2.3 The current era of globalisation .............................................................................................. 13 2.4 The role of the multinational enterprise (MNE) in the current era of globalisation ................ 14 2.5 MNEs and the New International Division of Labour (NIDL) ............................................... 15 2.6 Key theories on cities and globalisation – Global Cities and the World City Network (WCN) ....................................................................................................................................................... 15 2.6.1 The interlocking world city network (IWCN) – an example ........................................... 18 2.6.2 Impact of the Global Financial Crisis (GFC) on the WCN .............................................. 21 2.7 Creativity – Richard Florida and creative cities ...................................................................... 22 2.8 Agglomeration theory and cities ............................................................................................. 22 2.9 Growth of services industries across the world’s developed economies ................................ 23 2.10 Services industries and agglomeration .................................................................................. 24 2.11 Knowledge workers and knowledge economies ................................................................... 25 2.12 Theories related to professional workers............................................................................... 25 2.13 Knowledge cities ................................................................................................................... 27 2.14 Globalisation and the movement of knowledge workers ...................................................... 27 2.15 The literature review in the context of this research and the main subsidiary questions ...... 28 v 2.15 Conclusions ..........................................................................................................................
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