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- All Subjects: Arizona--Economic conditions
- All Subjects: Labor supply
- Creators: Rex, Tom R.
Following an analysis of economic conditions, this paper examines actions that can be taken by state governments to stimulate the economy. The only action that results in a significant near-term effect is to accelerate spending on physical infrastructure that has already been identified as needed.
The Phoenix metropolitan area’s “favored quarter” for employment in 1995 – the metro area’s highest employment densities outside the primary core – extended from Chaparral Road in Scottsdale to Baseline Road in Tempe. Downtown and South Scottsdale’s success can be traced to being adjacent to the favored residential quarter that extends from the area around the Phoenix Mountains through north Scottsdale. In the 1990s, the favored employment quarter has been extending north in Scottsdale through the favored residential quarter. The presence of Arizona State University, proximity to Sky Harbor Airport, and access to the region’s first two freeways contributed to the portion of Tempe north of Baseline Road becoming the largest employment center outside of the primary core in Phoenix. Employment also was above average south of Baseline Road, extending into the secondary favored residential quarter of South Tempe and Ahwatukee – Foothills. Considering residential and economic factors, the Phoenix metro area’s favored quarter stretches from north of Squaw Peak in northeast Phoenix through Paradise Valley, Scottsdale, and Tempe to south of South Mountain in southeast Phoenix.
The condition of Arizona’s infrastructure has a direct impact on economic productivity and quality of life. As economic competition expands domestically and globally, and as the knowledge economy evolves, the importance of a strong infrastructure increases. Education, in particular, is of growing importance. Arizona’s infrastructure challenges will require commitment and creativity to meet the needs and potential of 10 million people and to ensure a positive future for the state.
Arizona’s total value of international exports as a share of gross product was 33rd highest among the 50 states and District of Columbia in 2012. Arizona ranked 36th for manufactured goods. In 1997, Arizona had ranked eighth overall and ninth for manufactured goods. The state’s large relative decline in export share can be traced to its sizable relative decrease in its manufacturing sector. In particular, the electronics manufacturing subsector’s share of total GDP has dropped considerably.