Abstract
Earlier research on the impact of national economic restructuring on central-city economies suffered from several problems, including excessive aggregation of the data and reliance on absolute change in economic activity to measure growth. When these factors are corrected, one sees that central cities frequently attracted more new firms than other locations (absolute growth), but their growth rate was below that in suburbs and nonmetropolitan areas (relative growth) as well as the national rate. These below-average rates occurred in many of the 13 economic sectors studied, including low-skill and high-skill services, in which central cities were expected to perform well. The few bright spots—central cities in the South and West, which initially outperformed all other locations in those regions—have faded as well.
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