Global reach and second-tier cities: An initial exploration of export activity from the bottom of the U.S. metropolitan hierarchy

Abstract

ABSTRACT Urban-economic research has long been dominated by a focus on the largest cities. Nonetheless, growing economic inequality and differences in connectivity throughout most advanced market economies has led scholars to acknowledge that second-tier urban places can function differently than their larger counterparts. Grounded within the research frameworks of the smaller city literature, as well as export base and urban-level export research, this paper seeks to examine the economic role of exports (and by extension, global trade) within smaller U.S. metropolitan areas, evaluating how export performance and export composition are related to the economic health and workforce characteristics of these second-tier urban regions. The analyses find that smaller metropolitan areas have a greater dependence upon goods-related exports than large metropolitan areas, consistent with the expectations of the product life cycle. Moreover, export intensity in second-tier metropolitan areas creates downward pressure on per capita GDP. Finally, the paper discusses export policy in terms of its impacts on second-tier metropolitan areas.