Economic Pulse articles aim at providing data-driven analytics that could be used by lay business owners, policymakers, and the general public. The common thread among these articles is the focus on regional economic development, particularly in South Texas.
2023 Collection on ArcGIS Storymaps ...
Past Issues
2023
Renaissance in Entrepreneurship ...
2023-10
Jim Lee
An explosion in new businesses was one pleasant surprise of the pandemic years.
Possible explanations include the consequences of failed businesses and massive layoffs during the COVID-19 economic crisis,
post-pandemic consumer needs, and the popularity of running a business from home.
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South Texas Housing Markets: Everything, Everywhere ...
2023-9
Jim Lee
The pandemic has widened a decadelong gap between housing demand and supply across the U.S. Aggressive interest rate hikes by the Fed have ended a pandemic-led housing boom,
but the market outlook for Texas coastal communities is positive.
This is an excerpt of a presentation at a conference hosted by the Corpus Christi Association of Realtors on April 20.
Download PDF file ...
Social Resilience and Local Economic Recovery ...
2023-8
Jim Lee
Government officials deem social vulnerability and resilience critical for local communities to respond to a disaster and bounce back from it.
COVID-19 disproportionately impacted communities with a higher Social Vulnerability Index,
but a host of other factors also explain both the initial economic shock and the subsequent recovery across Texas counties.
Counties in the Coastal Bend show relatively low social resilience, which helps explain their performance during the pandemic.
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Disconnected Youth in Corpus Christi ...
2023-7
Jim Lee
In Corpus Christi, more than 6,000 youths between the ages of 16 and 24 are disconnected from work and education, making up slightly less than 15% of the youth population.
Disconnected youth are dominated by people of color, especially women who are married, less educated, and have children.
The wide socioeconomic gaps notably for Hispanic women are exacerbated by their traditional gender roles to be the primary household members to care for children and older relatives.
Download PDF file ...
Environmental Justice in Corpus Christi ...
2023-6
Jim Lee
Federal government agencies have developed online tools to implement the Biden Administration's Justice40 Initiative.
Those tools help us better understand the extent and nature of environmental and socioeconomic inequities locally.
Future government-supported projects will strive to generate disproportionate benefits to federally designated Disadvantaged Communities,
which have historically been overburdened by environmental impacts under climate change.
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Coastal Bend's Innovation Capacity ...
2023-5
Jim Lee
Innovation is a key driver of sustainable economic growth, and the Coastal Bend has a moderate innovation capacity in comparison with other areas in the nation.
In the nation's transition to net-zero emissions, the Coastal Bend is well-positioned to develop a hydrogen hub with carbon capture and storage infrastructure as an alternative energy source,
but technological know how remains a deciding factor.
Download PDF file ...
Bitcoin Miners Coming to Town? ...
2023-4
Dimitrios Koutmos
Crytocurrency miners have been eyeing Texas as a base for their mining operations. And Bootstrap Energy plans to build a mining plant in Corpus Christi that is extremely energy intensive.
There is much opportunity in this technology and for the creation of new jobs. But, as the idiom goes, the devil is in the details.
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Upward Mobiity in Corpus Christi ...
2023-3
Jim Lee
Economic connectedness in the form of friendships between rich and poor children helps create a pathway out of poverty for the poor later in life.
Other than climbing up the economic ladder within the same community, people can achieve better economic outcomes by moving to an area that provides them with more economic opportunities.
Yet poor young people are less likely than rich young people to move out of Corpus Christi.
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Corpus Christi's Growth Future ...
2023-2
Jim Lee
This is an ArcGIS Storymap about Corpus Christi's growth limits based on GeoRED's data.
Download PDF file ...
Pre-K for CC ...
2023-1
Jim Lee
Corpus Christi provides early education to only one in five preschoolers ages 3 and 4.
Inequities in early childhood education prevail across different neighborhoods.
Kindergarteners learn more in communities with more pre-K services.
Download PDF file ...
2022
Missing Texans in Census 2020 ...
2022-10
Jim Lee
Miscounts of the population in Corpus Christi and Texas may shortchange their local communities of political representation and federal funding.
The Census Bureau and some researchers have found that the Black and Hispanic populations were more likely to be undercounted than the White and Asian populations in the 2020 Census.
Should the census count all local residents, the Corpus Christi metro area could gain as much as $600 million in federal funding for various public programs over the 2021-2030 period.
Download PDF file ...
Shrinking Military Workforce in Corpus Christi ...
2022-9
Jim Lee
The military base in Corpus Christi is the largest employer of the Coastal Bend.
In addition to military personnel, Naval Air Station Corpus Christi and Corpus Christi Army Depot together employ more than 5,600 civilians and contractors.
The sizes of the military and civilian workforce in the two military installations, however, have shrunk gradually over the past 20 years.
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A Tale of Two Cities (Redux) ...
2022-8
Jim Lee
Despite their similar sizes in 1960, Austin is now five times larger than Corpus Christi as a result of an average of 3% higher annual population growth rate.
Instead of expanding the hi-tech sector in Austin, Corpus Christi has relied on investments in heavy manufacturing and energy-related industries.
Their exposure to different economic sectors was the most likely driver for their diverging growth paths in the last 60 years.
Download PDF file ...
Buying Local ...
2022-7
Jim Lee
Locally owned, independent businesses make up a vast majority of businesses in Corpus Christi, but they are typically substantially smaller than other businesses like national chains.
Local businesses recirculate a larger share of every dollar they generate within the local economy because they tend to spend more on local labor, utilize more local goods and services, and keep their profits within the community.
A modest 10% shift in market share from chain stores to locally owned stores in the retail sector would generate a total economic impact of $153 million in annual sales and 1,367 jobs.
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COVID Impacts: Student Learning and Achievement ...
2022-6
Jim Lee
Following the statewide patterns, the overall 2021 STAAR test results for schools in Corpus Christi declined significantly across all grades and subjects after steady improvements for years before the pandemic.
The college-going rate among local high school graduates dropped in 2021, but the number of those not required to complete developmental education in college improved significantly.
To meet the 60x30 educational goal, Corpus Christi and the state as a whole would need to accelerate the college-going rate for high school graduates and postsecondary completions in addition to the improvement in college readiness that most local schools have achieved.
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COVID Vaccination: Red, Life and Blue Matter ...
2022-5
Jim Lee
The COVID vaccination level has spread unevenly across different neighborhoods in Nueces County.
Residents are less likely to be vaccinated if they do not own a vehicle or if they live in a rural area outside the city of Corpus Christi.
Communities with lower socioeconomic status or less educated residents also show higher vaccine hesitancy.
Political views and mistrust in government also affect vaccine acceptance.
Download PDF file ...
State of the Coastal Bend Economy ...
2022-4
Jim Lee
Though the region's historical income and job growth gaps have widened once again,
the pandemic has also created numerous new opportunities for local businesses, employees, and communities as a whole to bounce forward.
An accelerated transition to renewable energy, the ongoing influx of out-of-state businesses and skilled workers,
and the flexibility for employees to work from home all have the potential to transform the economic landscape of the region in years to come.
Download PDF file ...
Rising Costs of Living ...
2022-3
Jim Lee
As the economies of Corpus Christi and the rest of the nation are recovering from the pandemic-induced recession,
the prices of most goods and services are surging as well. In addition to rapidly rising living expenses this year,
Corpus Christi residents have been facing an uptick in the overall cost of living relative to the rest of nation in the past decade,
driven largely by expenses on housing and utilities.
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Corpus Christi's Blue Economy ...
2022-2
Jim Lee
The relative sizes of different ocean-related sectors vary substantially across the three counties of Corpus Christi.
The area is a renowned recreational fishing destination, but the commercial fishing industry has largely disappeared.
While tourism has grown steadily, the region has been exposed to the ebb and flow of oil and gas extraction offshore as much as onshore.
South Texas is poised to leverage Gulf Coast resources as drivers of economic growth, including oysters and offshore wind energy.
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COVID-19 Impacts: Urban Flight ...
2022-1
Jim Lee
The economy has rebounded. Corpus Christi's overall employment is now about 96 percent of the pre-pandemic level,
but many people remain out of work for different reasons.
The area faces relatively high structural unemployment beyond the slack created by the pandemic-induced recession.
Labor market shortages have created better employment opportunities for teenagers and low-wage workers.
Download PDF file ...
2021
Advancing Education Equity ...
2021-10
Jim Lee
Like the state, Corpus Christi has fallen short of meeting the educational attainment target for achieving the 60x30 goal.
The number of higher education completions has been rising among minority populations, but not enough to close existing gaps.
Education equity sets the stage for health equity in addition to workforce development.
Download PDF file ...
Coastal Bend Economic Development Strategy ...
2021-9
Jim Lee
This is an excerpt of a key section of the CEDS report, Goals and Strategic Actions,
which highlights economic development priorities from the collective perspectives of committee members.
The full report also contains a profile of the region and its economy,
followed by an overview of strengths, weaknesses, opportunities and threats, or SWOT analysis.
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Regional Population Growth in 2020 ...
2021-8
Jim Lee
The latest Census indicates that the Coastal Bend continued to stay behind the state in population growth during 2020.
Outmigration has slowed down, following a strong migration flow into the state that will likely continue for some time.
The overall educational attainment of the region remained behind the state and nation,
raising a barrier for its economy to bounce back from the pandemic.
Download PDF file ...
The Impact of COVID-19 on Local Tourism and the Economy ...
2021-7
Jim Lee
COVID-19 has led to substantially higher unemployment in the hospitality sector than the rest of the regional economy since April 2020.
Corpus Christi lost an estimate of 1,066 jobs
and $30 million in wage earnings directly associated with reduced visitor spending in the area.
Download PDF file ...
COVID-19: Geographic and Demographic Differences in Economic Pain ...
2021-6
Jim Lee
Soon after the state rescinded its business capacity restrictions in March, foot traffic at most businesses returned to their pre-pandemic levels.
Despite improvement in residents' overall mobility, they have continued to spend about 20% more time at home.
Work from home and online learning now account for most of the extra time people spend at home
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Lodging Industry Rebound as Driver for Local Recovery ...
2021-5
Jim Lee
The hospitality industry has been hit particularly hard by the COVID-19 pandemic.
Except those downtown convention and conference hotels, motels in Corpus Christi have fared relatively better than those in other cities.
The area's beaches and coastal environment will likely continue to attract visitors in the face of the pandemic.
Download PDF file ...
New Business Boom in the COVID-19 Economy ...
2021-4
Jim Lee
The U.S. economy stands alone in creating the most business startups amid the pandemic.
By helping transform the post-COVID economy, these new businesses are poised to raise employment and productivity growth in the long run.
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Year 2020 in Review ...
2021-3
Jim Lee
Like the rest of Texas, Corpus Christi and the Coastal Bend sustained record-high unemployment
and job losses during the onset of the COVID-19 pandemic. But since then,
Corpus Christi has trailed other metros in economic recovery due to its reliance on the energy and hospitality industries
--both have been hit particularly hard.
Download PDF file ...
Understanding Economic Development ...
2021-2
Jim Lee
The top strength of the regional economy stems from the Port of Corpus Christi,
which contributes infrastructure for economic growth through an emerging industrial manufacturing sector.
The region's competitiveness is constrained by a lack of a highly educated, skilled workforce.
Opportunities for future growth abound: The Port is poised to expand its export capacity; current rapid growth near Austin could potentially spill over to South Texas.
One major threat to the community is rapid industrial development that would arguably diminish the quality of life in some neighborhoods.
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COVID-19 Impacts: Urban Flight ...
2021-1
Jim Lee
Despite a deep economic contraction, the housing markets of Corpus Christi and Texas remain tight.
In response to the growing desire for space over density, an urban flight has emerged in large metro areas across the nation.
Growing housing demand in Corpus Christi, especially in its coastal communities,
may potentially reverse the decades-long outmigration of residents to other Texas metro areas with relatively more job opportunities and amenities, such as Austin and San Antonio.
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2020
COVID-19: Lives or Likelihoods ...
2020-11
Jim Lee
Using a popular epidemiology model, we make projections for the numbers of COVID-19 infections under different hypothetical scenarios.
Model predictions help us better understand the current policy dilemma between public health and reviving the regional economy.
Drawing on available labor market data during the ongoing pandemic,
we find the cost of shutting down businesses in terms lost wage earnings for each infection or death avoided to be at least twice as much for the local area as for Texas as a whole.
Download PDF file ...
Costs of Ozone Nonattainment ...
2020-10
Jim Lee
Should Corpus Christi fail to meet the EPA ozone standards,
the metro area would face economic losses between $600 million and $1.7 billion each year.
Such costs include explicit costs for construction permits, pollution controls, vehicle inspections, and educational programs;
and losses of economic activity due to industrial and road construction delays, as well as lost industrial development opportunities.
The economic consequences of the stay-at-home orders in April underscore the tradeoff between economic vitality and a healthy environment.
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Record Unemployment ...
2020-9
Jim Lee
Corpus Christi's unemployment rate surged to a record level of 15.8 percent in April.
Unlike the rest of Texas, the area faces a double whammy as a result of its exposure to the hospitality and energy sectors, both of which have been hit hardest during the COVID-19 pandemic.
As social distancing has begun to wind down, businesses and the overall economy are gradually returning to a new normal.
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COVID-19: Early Weeks of Recovery ...
2020-8
Jim Lee
We look at GIS-based real-time data that offer insights into the impact of stay-at-home orders on businesses and the economy.
Governments' lockdown orders alone did not shut down the economy, and some businesses did not reopen immediately after those orders expired.
The local economy has been reopening gradually since Easter,
and recovery will likely take the shape of a Nike swoosh instead of a V-shaped rebound.
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COVID-19: Altering Policy Tradeoffs ...
2020-7
Jim Lee
The focus of this article is policy that may potentially alter the usual tradeoffs between actions to combat the coronavirus outbreak and damage to the economy.
Those policy strategies and lessons around the world are not conventional monetary and fiscal policies aimed to stabilize the economy,
but some of them can be adopted by policymakers to reopen businesses without substantially raising the public health risk.
Most effective policies take into account differences among regions, industries, and occupations.
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COVID-19: Geographic and Demographic Differences in Economic Pain ...
2020-6
Jim Lee
Current policy actions to slow the spread of COVID-19 disproportionately affect the economy of Corpus Christi.
Compared with a typical U.S. city, social distancing affects relatively more businesses and employees in the area with a sizable hospitality sector.
A stay-at-home order affects the livelihoods of relatively more of the area workforce that cannot work remotely.
As a result, the public health crisis has led to social injustice locally as the Hispanic population and the working poor suffer more economic injury than others do.
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COVID-19: Outbreak and Impact ...
2020-5
Jim Lee
The article addresses two questions. The first question concerns the origin of the virus outbreak during its early days, highlighting the downsides of a top-down, command-and-control political system and recent global trends.
The second question concerns COVID-19's local economic impacts that also depend on the extent of resilience in the community.
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60X30 Progress ...
2020-4
Jim Lee
There is evidence in support of progress towards reaching the 60x30 goal statewide as well as locally. As for the state, the region and school districts have shown steady improvement in standard test performance.
Low graduation rates in the region's postsecondary institutions, particularly in comparison with local high school graduation rates, reflect low educational attainment levels among residents in Corpus Christi relative to the nation.
Still the region is making progress towards achieving the 60x30 goal with an increasing number of postsecondary certificates or degrees awarded in each year since 2015.
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Local Demographic Trends ...
2020-3
Jim Lee
The local population remains young on average relative to the U.S. population, but changes in the area's demographics have affected the composition as well as the size of the its labor force.
In addition to an aging workforce, Corpus Christi's labor market has seen strong growth in the woman and Hispanic populations that are more likely to find employment in relatively lower paying jobs.
The non-employment index, which arguably represents a more accurate measure of labor market conditions than the official unemployment rate, indicates substantially more labor market slack in Corpus Christi than previously realized.
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Local Outlook 2020 ...
2020-2
Jim Lee
Global threats and geopolitical uncertainty are weighing on our outlook for the Corpus Christi economy.
When we bring the region’s assets into focus, the picture is less fuzzy.
Despite potential risks in the oil market and the overall global economy, the region is poised for continued growth in both the near- and long-term future, especially given better utilization of regional resources.
This is an excerpt from a presentation given to the American Bank Board members on February 19, 2020.
Download PDF file ...
Inclusive Growth Workforce Gaps ...
2020-1
Jim Lee
We identify local economic gaps under the inclusive growth approach:
(1) Gender gaps - Despite relatively high educational attainment, women are less likely than men to enter the workforce. Hispanic mothers with young children have the least labor force participation rate.
(2) Demographic gaps - With a dou-ble-digit unemployment rate, the youngest working age group of 16 to 24 years makes up about one-third of the unemployed locally. Economic hardship falls disproportionately more on less educated Hispanics.
(3) Wage gaps - Occupational segregation of Hispanics and women in construction and healthcare is correlated with their overall relatively lower wage earnings.
(4) Technology gaps - The local Hispanic workforce is par-ticularly susceptible to automation in the future.
(5) Talent gaps - The area seems to be losing its competitive edge in attracting high-skill professionals, while employees are not well informed about their on-the-job training opportunities.
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2019
An Economist's Guide to Corpus Christi ...
2019-10
Jim Lee
This is an excerpt from a presentation to the Texas Association of Mexican American Chambers of Commerce quarterly conference in Corpus Christi, on June 14-15, 2019.
The presenter outlines the area's growth opportunities as well as some challenges that lie ahead.
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Tightest Labor Market Ever? ...
2019-9
Jim Lee
With the lowest unemployment rates ever recorded, Corpus Christi and the Coastal Bend region are facing tight labor markets.
Yet job gains have been modest by comparison. Much of the recent improvement in regional unemployment was the outcome of a loss of labor force to the rest of the state and the nation,
both of which have been experiencing relatively stronger economic and job growth.
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The Local Digital Economy ...
2019-8
Jim Lee
The rise of the digital economy has changed the way we work and shop. Such changes, which are transforming the marketplaces of products and labor, contribute to an emerging divide with winners and losers in different regions and industries. Future economic growth in our region relies critically on how the community leverages its transition to the new economy.
Download PDF file ...The Shrinking Coastal Bend ...
2019-7
Jim Lee
The Coastal Bend's population has declined for the first time since the turn of the century.
In the wake of declining oil production in South Texas, Hurricane Harvey only accelerated the pace of reversal from historical growth.
The regional workforce has also shrunk due to outmigration as well as a falling labor force participation rate
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Rockport-Fulton Business Survey 2019 ...
2019-6
Jim Lee
A recent survey revealed that the vast majority of businesses had reopened in Aransas County,
despite the extent of property damage. Many businesses were facing the challenges of falling sales,
a reduced customer base, and staffing needs
The majority of respondents expected full recovery to occur no sooner than 2021.
They were also in need of a plan for the next hurricane.
Download PDF file ...
State of Local Housing Affordability ...
2019-5
Jim Lee
The overall supply of homes in Corpus Christi seems adequate, and a typical resident is not spending too much on home ownership or rental housing.
But the finding of overall housing affordability is not particularly helpful for understand-ing the housing needs of low-income groups.
Most homes have been built for middle-income families in Southside; the supply of homes is virtually non-existent in the low-income neighborhoods.
Download PDF file ...
Business Recovery from Harvey: One Year Later ...
2019-4
Jim Lee
According to a new study, property damage from Hurricane Harvey affected the way businesses in Aransas County financed their rebuilding efforts,
which in turn affected the ability of businesses to resume operation after a temporary closure.
Members of the Rockport-Fulton Chamber of Commerce and women were more ready to reopen their businesses.
Loss of employees posted a challenge for affected businesses to recover.
Download PDF file ...
New School Report Cards: 2018 ...
2019-3
Jim Lee
The new measures of public school performance reflect a wide disparity in student achievements across areas in South Texas
and the state. While socioeconomic factors play a role in determining student performance, the statewide 60x30 educational
goal paves the way for local initiatives that aim to boost the competitiveness of the Coastal Bend with a more developed workforce.
Download PDF file ...
Bridging the Digital Divide in South Texas ...
2019-2
Jim Lee
Broadband internet access promises to bring growth opportunities to individuals and businesses,
especially those in rural communities. Despite its widespread impacts, it is difficult to measure or identify broadband's causal effects on economic activity beyond the IT industry.
Still there is early evidence to support that the impact of broadband adoption on the local economy is real and measurable.
Download PDF file ...
Technology and Regional Workforce ...
2019-1
Jim Lee
Today's technology is a double-edged sword for the Coastal Bend economy.
While technological advances have made many small businesses more competitive relative to large corporations,
the requirement of digital skills in the workplace, particularly in occupations with high job growth and wage earnings,
has created new challenges in regional workforce and economic development.
Download PDF file ...
2018
In Harvey's Path
2018-10
Jim Lee
Should Harvey make landfall in Corpus Christi instead of near Rockport,
the amounts of storm-related fatalities and economic losses would have been about ten times larger.
The road to business and community recovery in the Coastal Bend would likely be longer.
Harvey would also likely be the costliest natural disaster in U.S. history.
These counterfactual estimates are simply the outcomes of less than one-degree deviation from the coordinates of the historical storm track.
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Coastal Bend Industry and Workforce
2018-9
Jim Lee
The Coastal Bend economy has become more diversified.
During the past two decades, the military sector has reduced in size, while the construction sector has expanded considerably.
Along with growth in management businesses, major shifts in the regional economic landscape are unique to the region,
and they have affected the mix of occupations and increasingly more jobs require post-secondary education.
Women and Hispanic employees are concentrated in a few industries.
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Local Economy and Small Business Update
2018-8
Jim Lee
The South Texas economy is facing an uncertain future in the near term, mainly because of its exposure to oil and gas activity and the devastation from Hurricane Harvey.
An understanding of how these two game changers would affect this region going forward can reduce the uncertainty in our economic outlook, especially for local small businesses.
Harvey might have exacerbated our region's long-standing workforce problem.
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Hotel Recovery After Harvey
2018-7
Jim Lee
The immediate impact of the 2017 hurricanes on the regional lodging industry seems obvious.
It is estimated that 25% of the Texas statewide room-revenue gains in the fourth quarter of 2017 was attributable to Harvey.
The Corpus Christi metro area also saw a historic record gain of 10% in room revenues last year.
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Business Recovery After Harvey
2018-6
Jim Lee
It's been more than half a year since Hurricane Harvey made landfall in Texas. By March, more than half of businesses in Rockport were back in operation,
and about one-third of businesses in Port Aransas had reopened.
Even though the region has made great strides in bringing the business community to a "new normal,"
many impacted businesses are still in need of additional financial resources or technical assistance.
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Local Housing Outlook
2018-5
Jim Lee
Based on the current trends in local housing supply and the outlook for housing demand in the midst of a construction boom and post-Harvey rebuilding activities,
imbalances in the Corpus Christi housing market are expected to accelerate in the medium term.
The outcomes would be higher home prices and lower housing affordability, particularly among newly built homes.
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Workforce Impact of Construction Boom
2018-4
Jim Lee
The ongoing capital development projects near the Port of Corpus Christi and post-Harvey rebuilding efforts across the Coastal Bend together not only would raise the demand for regional construction and craft workforce, but they would also boost overall employment in the region for years to come.
Whether the expected economic impacts will be realized depends critically on the extent to which the region's education and skill training institutions satisfy the surges in workforce demand.
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Harvey's Impact on Corpus Christi
2018-3
Jim Lee
Hurricane Harvey is widely recognized as one of the costliest natural disasters in U.S. history, ahead of Sandy but behind Katrina.
This article focuses on its impact on communities within the Corpus Christi metro area, where the storm made its first landfall.
Simulation exercises suggest that the extended economic impact in the form of cumulative output losses reduces substantially the sooner those communities can recover.
This points to the role of government assistance in mitigating disaster impacts.
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Education System in Corpus Christi
2018-2
Jim Lee
Student performance disparities across local schools and measures of economic status are consistent among different subjects and different grade levels.
About 30% of freshmen at Corpus Christi's two public higher education institutions are local high school graduates.
These institutions' retention and graduation rates are relatively low, due in part to students who require developmental course work.
Low graduation rates explain the relatively low educational attainment levels among local residents.
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Best Recession Recovered Cities
2018-1
Jim Lee
Major cities in Texas are leading the nation in recovering from the Great Recession that began a decade ago in 2007.
According to a recent report by Honestly Now, Corpus Christi is the 45th fastest growing city since 2010.
The city is among the top 10 best cities in terms income and employment growth,
but it is close to the bottom in terms of measures of economic resilience.
The disparity in those scores highlights the importance of long-term versus short-term factors for local economic growth.
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2017
Immigrants in Corpus Christi
2017-10
Jim Lee
While the population share of immigrants in Corpus Christi is relatively small, an estimate of one in three of them are undocumented workers.
Nearly 60% of local immigrants were born in Mexico, and the number of those from Asia has soared.
Proportionally more immigrants have a graduate degree and less than a high school education.
Undocumented immigrants are heavily concentrated in some labor-intensive industries of the construction and services sectors.
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What Levels the Playing Field?
2017-9
Jim Lee
This article summarizes some recent findings on income and wealth gaps for the major racial and ethnic groups.
College education and other observable factors that reflect individual choices do not collectively explain all the observed economic disparities
for Blacks and Hispanics, highlighting the extent of our ignorance about the underlying causes of racial/ethnic inequality.
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Demystifying the $10 Billion Impact
2017-8
Jim Lee
San Patricio County has been selected as the location for the construction of the world?s largest plastics manufacturing plant.
The $10 billion capital expenditures will generate a sizeable impact on that county, but its neighboring Nueces County will reap most of the ripple effects.
Economic impacts will also vary by industry.
Compared to the construction phase, the plant in operation will create a larger multiplier effect due to the permanent nature of the direct jobs that also pay substantially more.
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Recent Employment Dynamics
2017-7
Jim Lee
Since oil prices collapsed in late 2014, the upstream oil and gas industry has shed over 3,000 jobs locally,
but Corpus Christi has sustained a relatively modest downturn in employment due to a variety of factors, including industry-wide and nationwide growth,
and self-employment across different sectors, particularly professional and business services.
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Economic Diversity Across South Texas
2017-6
Jim Lee
This is a summary of the 2017 edition of Aqua Book, published annually by the South Texas Economic Development Center.
The local economies of South Texas are diverse.
This aspect of the region makes it difficult to apply any one-size-fits-all type of economic development policy for the region.
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Local Business Dynamics
2017-5
Jim Lee
Business formation and growth are the key sources of long-term economic growth.
In this article, we take a close at small versus big businesses, and new versus established businesses in Corpus Christi.
The data highlight the importance of business startups and the business churning process to the local economy.
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Housing Market Downswing?
2017-4
Jim Lee
Corpus Christi's housing market has been booming since 2010.
Despite a slowdown in the local economy, residential construction remains active and home prices stay at historically high levels.
Is the housing boom coming to an end soon?
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Impacts of Rising Seas
2017-3
Jim Lee
Corpus Christi is one of the Gulf cities most vulnerable to the risk of rising sea levels. This article presents estimated impacts under the alternative scenarios of higher water levels by two feet and six feet. Given the projected sea level changes, the impacts seem manageable,
but the increase in economic losses would accelerate for each additional foot of higher water level.
Download PDF file
Closing Income Gaps with Education
2017-2
Jim Lee
Survey data show that youth who grow up in areas with more manufacturing are more likely to finish high school and college.
In regions with more degree-intensive employment, children born to parents without college education are more likely to be college graduates.
Simple calculations indicate substantial returns on public funding for human capital investment that may reduce the region's educational and income gaps.
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Seasonal Employment
2017-1
Jim Lee
Monthly employment and unemployment data for Corpus Christi show remarkable seasonal patterns.
In addition to employment in the agricultural sector,
local government employment displays a distinct regular pattern within a year.
Those seasonal factors could potentially bias interpretations of changes in local economic activity based on official data without seasonal adjustment.
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2016
A Tale of Two Oil Towns
2016-12
Jim Lee
Corpus Christi relies on the oil and gas industry as much as Houston does.
Both metro areas have been resilient to the impact of the current oil bust.
As construction and service-oriented employment is slowing down,
those two regional economies are facing new challenges in light of heightened uncertainty about the near-term outlook,
while recent trends in job postings and business sentiment are positive.
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Where You Live Matters
2016-11
Jim Lee
Where you live matters to your children's future economic success and perhaps how long you live.
Communities across the Coastal Bend fare well in offering children an opportunity to move up the economic ladder, especially those in poor families.
The average life expectancy of local residents, however, lags behind the national average, particularly for the poor.
This article is part of the series that focuses on economic disparities in South Texas.
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How Distressed is Our Community?
2016-10
Jim Lee
This article summarizes the findings of the Distressed Communities Index for Corpus Christi.
While the Index for the metro area as a whole is relatively low, indicating a relatively high living standard locally,
the scores vary vastly across its counties and zip codes.
Geographic disparities in economic prosperity affect long-term community development as well as individuals' lifetime economic success.
This article is part of the series that focuses on economic disparities in South Texas.
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Disparities in Local Business
2016-09
Jim Lee
Statistical evidence indicates that underutilization of local Hispanic and women-owned businesses is pervasive and entrenched in Corpus Christi.
The disparity gaps for those businesses are the outcomes of their rapid growth in number but not in size, measured by sales or employment.
This highlights the importance of developing existing local businesses as opposed to creating more new businesses.
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Understanding Local Unemployment
2016-08
Jim Lee
This article takes an inside look at South Texas's labor market by breaking down the unemployed workforce by industry and education level.
The unemployment rate is remarkably higher in mining and construction, and lower in the service sector.
Those without previous work experience make up the largest category of unemployment,
and the majority of job seekers are least educated or without a college education.
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Corpus Christi by the Rankings
2016-07
Jim Lee
This article provides an overview of various rankings for Corpus Christi in comparison with other U.S. cities. With extraordinary employment and income growth in recent years, Corpus Christi was ranked among the top 10 cities by WalletHub for overall growth, job opportunities, and business climate. Judged by various aspects of the quality of life, including environmental quality, active lifestyle and education, then the local area pales by comparison. Today Corpus Christi is best known as a city with lots of work and little fun.
Local Divergence after the Fall
2016-06
Jim Lee
Historically, the economic conditions of local communities within the Corpus Christi metro area tended to move in lockstep over time. During the past year, even though employment growth was quite evenly spread across the region, some local economies began to diverge, reflecting the direct impact of construction activities in various large-scale industrial sites on their surrounding businesses. This results in a shift of economic gravity from the south side of Corpus Christi Bay toward its north side.
Advanced Manufacturing Drives Local Economy
2016-05
Jim Lee
While oil and natural gas production in South Texas has been a main source of recent employment and income growth for Corpus Christi, industries in advanced manufacturing have emerged as the leaders in driving local GDP growth. Advanced manufacturing industries, which involve high levels of technology and workforce skills, are key to the region's future economic growth.
Survival of the Fittest in Texas Oil
2016-04
Jim Lee
A new study found that extraction of gas wells brought greater local economic impacts than oil wells during the shale oil boom period. The positive effect of low natural gas prices on the average production rate of gas wells is now being felt in oil production in the aftermath of a recent collapse in the world oil markets. The current survival of the fittest phenomenon tends to be more consistent with sustainable economic development in South Texas.
Local Health Care Dilemma
2016-03
Jim Lee
Health care is the largest private-sector employer in Corpus Christi. Expansion in health care facilities reflects local population trends. Despite employment growth among health care professionals, the increases of physicians in different specialties have lagged behind the rest of the nation. Those gaps post a challenge particularly in accommodating the medical needs of the rapidly growing old age population in South Texas.
Economic Disparity Among Us
2016-02
Jim Lee
Hispanics make up 60 percent of the Corpus Christi population, and nearly half of the local workforce is female.
Despite their increasingly significant roles in the regional economy, these minority groups have continued to fall behind in income earnings.
Higher education explains much economic disparity among various demographic groups,
but schooling is far from providing a level playing field, highlighting the complexity of this deeply rooted socioeconomic issue.
» Online Supplementary Data on Local Demographics »
Small Business Climate
2016-01
Jim Lee
Texas and the state's major cities have been ranked the best in friendliness toward small businesses. Training opportunities and ease of regulatory compliance are key factors for entrepreneurs' perceptions of the business environment. Local small business climate is key to job creation. The patterns of local business growth reflect population and income growth.
2015
Aging Corpus Christi
2015-07
Jim Lee
The Corpus Christi metro area has a rapidly growing population aged 60 years or older due in part to migration of baby boomers. Those older adults make up almost half of the population in Aransas County today. Their share of the metro area population will exceed 25 percent by 2030. This development has profound implications for long-term community plans such as Plan CC 2035.
Economic Diversification in South Texas
2015-06
Jim Lee
Diversification has become a long-term planning priority for many local communities in South Texas. This newsletter is the second in a series of articles that describe the extent of economic diversity within the region. Larger economies tend to be more diversified and more stable over time. The role of diversity across industries differs between measures by employment and by income.
Construction as a New Game Changer
2015-05
Jim Lee
This newsletter provides evidence in support of the widely held argument that current developments in industrial projects can more than offset the negative economic effect of falling oil production on South Texas. Employment data suggest that the regional economic impact of the shale oil boom already peaked out in 2012. Since then, the so-called New Economic Paradigm has shifted, with the construction industry as the new game changer for the Corpus Christi economy.
Local Employment Outlook
2015-04
Jim Lee
This article presents the short-term economic look for Corpus Christi from two vantage points: one as the aftermath of the recent plunge in oil prices, and another in light of ongoing capital developments around the Port. Those industrial construction projects would absorb much but not all of the slack associated with expected cutbacks in shale oil production, and so local employment growth is expected to slow down considerably from the solid pace in 2014.
A More Diversified Economy?
2015-03
Jim Lee
By standard measures, Corpus Christi is less, not more, economically diverse today than in the past. Despite this reality against the popular myth regarding local industries, the relative size of the mining sector has diminished considerably across South Texas since the oil market crash of the mid-1980s. This finding alone implies that the South Texas regional economy would probably be less vulnerable to the effects of the recent plunge in oil prices, although more economic diversity is not the underlying reason.
Payoffs of Advanced Training and Resource Curse
2015-02
Jim Lee
In recent years, the unemployment rate of local residents with some advanced training or an associate's degree has been below the unemployment rate for a bachelor's degree. The relative payoff of postsecondary education less than a four-year college degree is heightened by recent growth in shale oil and gas production across South Texas. Such anomalies in the local labor market reflect the so-called resource curse concerning the impact of an oil boom on the local community.
Corpus Christi as One of America's Happiest Cities
2015-01
Jim Lee
According to survey data, Corpus Christi is ranked among the top 10 cities across the United States for self-reported happiness. Residents in Corpus Christi are overall happier than those living in Austin and New York City. Americans in the South and particularly along the Gulf Coast tend to be happier than people in southern California and the Rust Belt. Yet the fact that people continue to move into those unhappy areas suggests that individuals can trade happiness for higher incomes or other financial gains.
2014
What Drives Coastal Bend Employment Growth?
2014-06
Jim Lee
Employment growth since 2010 has been quite uneven across industries in the Coastal Bend. Local industries that have expanded at a pace faster than the nation's are responsible for virtually all net job gains in the region. Industries that are directly or indirectly associated with oil and gas production have accounted for at least half of overall employment growth in the region.
From Oil Boom to Sustainable Economic Growth
2014-05
Jim Lee
Connecting the long road to sustainable growth from the current economic boom are physical and human capital accumulations, among other things. Workforce development appears to be the weakest link in South Texas, contributing to historical income and skills gaps with the rest of the nation. To bridge such gaps, local higher education institutions and workforce training facilities could acccelerate their student enrollments and graduation rates by multiple folds. Yet a more effective alternative is to focus on academic programs of professional degrees, such as engineering and medicine, which generate higher "wage premiums."
Resurgence of an Industry
2014-04
Jim Lee
The Coastal Bend is undergoing an industrial renaissance. A construction boom led by a record number of industrial capital projects is generating a surge in demand for construction labor and craft skills. Once completed, those large-scale industrial facilitates will generate a permanent gain of industrial manufacturing employment, reversing the historical trend of that sector.
Community Benefits of Type A Funds
2014-03
Jim Lee
This article reviews the economic significance of the City of Corpus Christi's Type A funds, which are supported by a one-eighth cent sales tax. Quantitative evidence supports that the public funds have benefited the local community by: (1) maintaining sustainable development of the downtown business and residential community; (2) enhancing the quality of life of Corpus Christi residents; (3) promoting continued development of local tourism; (4) fulfilling the housing needs of low-income families and seniors; (5) facilitating the development of a skilled workforce through local higher education institutions; (6) nurturing career development for college graduates; and (7) assisting the development or expansion of both large and small local businesses.
BRAC's Impact on Regional Economies
2014-02
Jim Lee
This article presents key findings of a study that investigates the impact of the 2005 round of BRAC on local economies across the United States. In
contrast to the common methodology, which generates projections of potential economic impacts from input-output models, this study applies statistical
methods to historical data of U.S. counties. The results reveal considerable resilience of local econmies to base closures or downsizing. Base expansions,
on the other hand, spur local employment and income. There is also evidence supporting different impact sizes across military divisions, and across employment
types.
Online Supplementary Data »
Vision 2020: How Big Will We Get?
2014-01
Jim Lee
Accurate forecasts of population growth are crucial for gauging future infrastructure and resource needs. The conventional methodology of relying on
historical trends is no longer reliable for the Coastal Bend in the shadow of the Eagle Ford oil boom. This article compares a number of local population
forecasts, including two new sets of projections based on current employment growth and migration patterns.
Online Supplementary Data
2013
Local Climate Change
2013-05
Jim Lee
Historical data reveal signs of climate change for Corpus Christi. An unprecedented warming trend emerged beginning in the mid-1970s, resulting in rising energy consumption for local residents. In contrast to the ob-served deviations from historical norms in local temperature, the current rainfall patterns seem to align with some periodical or recurring effects. This reduces the uncertainty regarding whether the current drought conditions will persist indefinitely.
The Business of Incubating Businesses
2013-04
Jim Lee
The Coastal Bend Innovation Center has helped with the development of nearly 100 new local business ventures since its inception in 2009. While some of those startups have thrived, others have probably failed. A large number of those firms operate in high-tech or green manufacturing industries, which the region lacks. As important as being a platform for entrepreneurship activity, the Center's close tie to its university has also created an environment for training tomorrow's business professionals.
A Tale of Two Counties
2013-03
Jim Lee
Historically, the economies of the two major counties in the Corpus Christi metro area, Nueces and San Patricio, tended to move up and down together over time. During the latter half of the past decade, events like BRAC and structural shifts across local industries, set the growth paths of the two communities apart. Yet their overall standards of living, as measured by per capita income, have almost converged.
Year 2012 in Review
2013-02
Jim Lee
The Coastal Bend economy posted solid gains in economic activity and employment during 2012. The housing market, the main driver of the most recent economic downturn, also began to experience sustained expansion. Yet the regional economy is also showing early signs of slowing down, possibly due to a bottleneck in some industries. Improvement in infrastructure and the overall production capacity, including physical and human capital, will help extend the region's recent growth momentum.
Reversal of Fortunes for South Texas
2013-01
Jim Lee
The South Texas economy has experienced a reversal of fortunes. During the past two decades, the economic gap between the region and the nation as a whole shrank steadily. Today, Corpus Christi outperforms the U.S. in terms of employment and income growth. While development in the Eagle Ford Shale region has played a prominent role in bolstering regional economic activity, the recent growth experience in South Texas might have also been driven by other long-term factors, including persistent upswings in oil prices and a more educated local workforce. An understanding of the major source of regional economic growth bears important policy implications.
2012
Coastal Bend Regional Growth: How Much is Regional?
2012-04
Jim Lee
This article is the second part of the study series that looks at the extent to which the Eagle Ford Shale oil and gas drilling activity weighs on the local economies in the Coastal Bend. The extent of the impact depends on the relative economic strengths, or comparative advantages, of the local communities. Recent economic growth was rather uneven across counties. A shift-share analysis indicates that the regional economic impact of the Eagle Ford Shale is also widespread across different industries, reflecting the region's unique infrastructure and diversified workforce. For all industries together, local-specific factors accounted for more than one-third of regional employment growth in 2011.
Regional Economic Impact of the Eagle Ford Shale: 2011 Update
2012-03
Jim Lee
This article provides an update for the impact of the Eagle Ford Shale oil and gas production activity on the regional economy of the Coastal Bend. The mining, trade and transportation, and hospitality sectors have witnessed phenomenal growth in Corpus Christi. In 2011, the booming oil and gas industry in South Texas generated at least 1,600 local jobs, which accounted for 32 percent of the area's total employment growth. The three Coastal Bend counties that sit atop the Eagle Ford Shale formation also experienced a combined gain of nearly 600 jobs and $80 million in business revenues.
BRAC V: The Aftermath
2012-02
Jim Lee
In this article, we look at the local experience during the last round of BRAC. Historical data depict a vivid picture of the impact of the closure of Naval Station Ingleside on San Patricio County, which witnessed a loss of over 3,000 residents during that process. In addition to those jobs eliminated directly by the federal government, the county lost more than 850 jobs, or about 3 percent of its workforce. While the actual impact seemed more tenuous than most forecasts, the economic pain felt by local residents and business owners far exceeded their gains in tax savings from BRAC.
Dollars and Sense in Literacy, Education, and Innovation
2012-01
Jim Lee
This article takes a close look at the extent of literacy, education and innovative activity in determining the overall economic well-being of Corpus Christi. While evidence suggests only a weak relationship between literacy and wage earnings, the payoff is substantial for a high level of education attainment. For the Corpus Christi community, innovation capacity and innovative activity are the key factors of its competitiveness that drives future economic growth.
2011
Another Tale of Two Cities: Corpus Christi and Hong Kong
2011-05
Jim Lee
This article looks at factors that have contributed to the growth miracle of Hong Kong. With an early history as a trading post along a deepwater harbor, this city-state bears much resemblance to Corpus Christi. Yet a laissez faire institutional structure, in which highly competitive markets operate alongside an efficient public sector with a low tax burden, contributes much to Hong Kong's economic growth that is four times greater.
Regional Economic Impact of the Eagle Ford Shale
2011-04
Jim Lee
This article provides an overview of the current oil boom in Texas since the drilling of the first oil well in the Eagle Ford Shale in 2008. Eagle Ford oil and gas production will have a remarkable economic impact on a large number of South Texas communities for years to come. How much this oil boom will benefit the Coastal Bend region as a whole remains to be seen.
Accounting for the Regional Impact of the Recovery Act
2011-03
Jim Lee
Since the passage of the Recovery Act in early 2009, over 50 infrastructure construction and improvement projects have been undertaken in the Coastal Bend through the federal stimulus program. A counterfactual exercise shows that the most recent economic downturn would have been much more severe without those projects. Regional unemployment would have been as much as 2 percentage points higher.
China, the Economy and the Coastal Bend
2011-02
Jim Lee
As the world's second largest economy behind the U.S., China has become the focal point of global trade and investment flows. With a massive Chinese investment project underway locally, this article provides a snapshot on economic interactions between China and the Coastal Bend region.
A Decade of Change in the Coastal Bend
2011-01
Jim Lee
During the first decade of the 21st century, the Coastal Bend economy grew modestly, as compared to Texas and the United States as a whole. A close look at the region's past performance helps us understand the future prospect of our community. Relatively low income levels and slow employment growth locally prompt concerns about a possible decline in our quality of life.
ABOUT Economic Pulse
Economic Pulse is a joint publication of the College of Business, South Texas Economic Development Center, and the EDA University Center at Texas A&M University-Corpus Christi.
The primary focus of this newsletter is business, economic and community developments in South Texas. Viewpoints and opinions expressed do not necessarily reflect the views of Texas A&M University-Corpus Christi.