Economic Development: The Base

The New Mexico State University College of Business e-newsletter, "New Mexico Business Outlook," has a useful review of economic base studies in the December issue. See: http://bbrs.nmsu.edu/nmbizoutlook. Economic development, in the formal sense as opposed to the political platitude sense, is all about growing the economic base. Step one is to define the region, says Dr. James Peach, NMSU economist who wrote the article. 

The economic base consists of those activities that serve an export market. That means that the result of the activity leaves the local market, however defined, and is paid for by money coming into the market. For Las Cruces, Peach notes, NMSU serves an export market, though probably not entirely.

NMSU has completed 35 economic base studies, Peach reports, one for the state, one for the four-county Albuquerque metro and one for each of the 33 counties. To find the studies, go to: http://arrowheadcenter.nmsu.edu/policy/baseStudies.php. 

Peach is one-third of the NMSU economic team that reviewed the New Mexico economy for the coming issue of Capitol Report New Mexico. The new issue will be in the mail next week. Tony Popp and Chris Erickson were the other authors.