Pekin City as an Economic Center - Essay Example

? Pekin as an Economic Center and number: submitted: Many cities and towns differ prominently. Obviously they differ in size and population. However, prominent cities are inhabited with more educated and productive individuals, have well-paying jobs, well enlighten construction plans, high pricing houses and inequality. All these differences amongst the cities are not formulated with external facts of nature. Instead, they are caused by hundreds of millions of individual assessments, each providing opportunities for new jobs, earnings, associate, and living costs. However, what constitutes the relation of the different individual’s decision to comprehensive outcomes we see in the cities? This is the question we are going to pay attention to in this essay by looking at the urbanization and development of the city of Pekin in the state of Illinois (Fujita and These, 2002). Pekin City was first discovered after the Europeans immigrants explores landed on the eastern bank of the Illinois River. Pekin city started as an agricultural center with slight trading activities along the Illinois River. As a result of immigration, more people flew in leading to high density economic activity location thus leading to urbanization. Pekin City is located in the county of Tazewell in the state of Illinois, being the biggest city in the county of Tazewell, and the essential part of the Peoria metropolitan area. Pekin is situated on the Illinois River. Pekin City is the county seat and the government core for the county of Tazewell. Pekin City is accessible to air travel and river ways; rich and skillful work force; a lively local economy; an excellent quality life- thus enabling business to thrive well in the city. From the census carried out in the year 2010, the Pekin city has a population of 34, 094. The extension of the city into the county of Peoria is limited by a small portion of the town (Fujita and These, 2002). From the research, Pekin city is the thirteenth populated city in Illinois. The city has managed to grow economically leading to its urbanization through several factors that are discussed in the following pages. 1. Source of economies The accessibility to air travel and river ways; rich and skillful work force; a lively local economy; an excellent quality life- has enhanced the development of Pekin city over years. Pekin city provides a variety of economic incentive and tools for expanding and innovating new business. An example of this business is the River way Business Park. The easy run of business has attracted many investors around the state and nation. In general, people from all around the nation and the state are attracted to the service (Fujita and These, 2002). a. Economies of scale at the firm level Over the years, city of Pekin has been going through significant changes. Some of the changes are the commercialization and industrialization expansion on route 29. This has enabled the growth of large firms like Pekin’s Auto Row. The large firms within the city of Pekin have upsurge specialization and use of technologies, hence increasing the efficiency while lowering the average cost of the firms. These have been a tremendous contribution to the growth and expansion of the Pekin City. b. Economies of scale at the place level As time goes by more settlement kicks in leading to clustering and over population within the city of Pekin. This lead to investors like Nat City Investments Inc. Company locating firms in the same sector closely, (agglomerating) within the city of Pekin, hence leading to agglomeration economies. The concept of agglomerating is associated to the knowledge of scale economies network effects. However, clustering of related industries together may lead to declining of costs production; it might be of advantages to the city. The multiple firms of the same sector clustering together in Pekin city attracts more suppliers and customers hence leading to the expansion and growth of the city (Fujita and These, 2002). c. New technologies Formation of economic activity clusters by firms in the Pekin city develops more strategies like Manufacturing Strategy Group that came in and throughout the area of economic activity. This helps with the information accumulation and adaptation of new and innovative ideas among firms for improvement of what is known as increasing returns to scale. The internal economies allow more establishments of the same firms outside the Pekin region than different firms. In conclusion, as an outcome of the clustering it becomes possible for the firms within the Pekin City to initiate other business that results to the urbanization of the city (Fujita and These, 2002). 2. Localizing economies Pekin city has been known to localize the firms like Pekin insurance company within its city. This has been a significant factor to the city income in many ways. As the result of localizing firms within the Pekin City, the pools of market labor emerges. As the people enter into the region, they share ideas and knowledge which in turn lead to agglomeration economies. The more firms established in the city have enormous competition to employ workforce and, therefore, resulting to higher wages for the employees (Fujita and These, 2002). The easy access to specialized goods and services offered by the clustered firms in Pekins contributes a lot to the localization economies within the city. The process of accessing to specialized goods and services it refers to as intermediate inputs. As a result of the Pekin city proximity to availability of sources necessary for production, the intermediate input provides each firm within the city with the increasing returns to scale. Tradable intermediate inputs in Pekin city form the core-periphery notions that have more firms locating closely and closer to their necessary sources. Source linked to localization economies in Pekin City is the technological spillovers. One most advantage of technological spillover is that clustering in sectors leads to a faster diffusion of ideas. In order for the city of Pekin to be at its maximum and market its production, the firms within it require some means of accessing to the capital markets. Firms clustering around the city develop an advantage to lessen the amount of uncertainty and complication resulting from the use of technology via information flow. The concentration of technology and capital flow within areas is an advantage to the firms to locate near such areas (Fujita and These, 2002). 3. Geographical location Pekin City is positioned along the Illinois River. The most physical feature projecting in the region apart from Illinois River is the topography that rises up from the valley and transform into flat rich farmland. The region is within the land rich in fertile which are an ideal for the Pekin community to grow various products. This has enhanced the practice of Agriculture which is the key to the economy of the city. The products obtain from agriculture are supplied to the firms within the city which is external economies to the firms. This has been beneficial to the development of Pekin city as it provides raw materials to the industries within the locality. It has also been able to help city sustain well-being of the community as it provides food supplies (Fujita and These, 2002). 4. Education. Pekin City has organized its school system into five elementary school district and Pekin community High School District #303. The five elementary schools include Pekin Elementary School District #108, Spring Lake Elementary School District #606, Rankin Community Elementary District #98, South Pekin Grade School District #137, and North Pekin - Marquette Heights Elementary School District #102. Focusing on the high school district #303, which obliges students, who are in grade 9-12, has four principal goals to achieve. These goals are set forth for student achievement, community, technology, and staff. For students, these goals are to offer a supportive learning atmosphere that will promote students level of achievement. The goals deliver technology as a tool for instructional and promote the community, administration, staff, students, and faculty. Also, these goals nurture positive relationship between the school and community. Lastly, the goals provide an atmosphere that nurture collegiality and professional advance. In addition to Pekin high school, the school involves students in different fields of sports. For instance, the school team is identified as Dragons after being changed from chinks in the year 1980 by the administration. The group of American chines who had visited the town had tried to change the name during the 1974-1975 school years. However, the students were not happy and voted the idea down and that was the only year the students were not awarded any gift. All this was after the belief that Pekin city was named after the Peking city of Chinese which is believed to be lying exactly opposite the Pekin city of Illinois. The team was nicknamed chinks after the team mascot, which was a male and female students dressing traditional Chinese attires. Students of Pekin high school, to them, the name chinks meant hard worker, and they were honored to be called chinks. All these have been beneficial to the development of Pekin City as they provide skillful and knowledgeable workforce. 5. Business Business in the city of Pekin is extremely essential to its development. Existing business and commercial in the city have been kept vibrant while fresh business and commercial growth are required to sustain and upsurge the economic potentials and opportunities. These are the economic base which is the primary key of economic development driver for the city. The economic base brings in money from outside the Pekin city in the form of wages. These wages are then spent by the community within the city for everyday services and goods. Some of the businesses run in the city of Pekin are the Chinese restaurants like the Lain Wang Chinese Restaurant, China Village Buffet, and many others. 6. Population Pekin city was unified in the year 1849 and by then was inhabited with 1, 500 residents. For the past last forty years, population of Pekin city has oscillated 28,000 individuals in the year 1960, to a maximum of 33,967 in 1980. These have been due to mobility and immigration of the population (churning of population) within and outside the city. For instance, the Pekin city population is mixed with Whites, Blacks, Asians, and Indians. Pekin population is part of the higher metropolitan region, and the development and expansion of Pekin is inter-connected with the development of the larger region. This has been essential for Pekin city development as people of different background within the city share new ideas, knowledge, and innovation. 7. Technology The most prominent technology within the city of Pekin is the Transportation, communication and industrialization. These have been remarkably essential to the promotion of the economy of Pekin city through internal economies, agglomeration economies and new technologies. These technologies are explained in detail in the following text (Fujita and These, 2002). a. Transportation The Pekin city is outstanding for logistics, with air travel, roads, river, and rail. Accessibility to all these means of transportation has been influential for past and future development of Pekin city through agglomeration economies. This has led to efficiency and reduction of cost of transporting goods/ products within the city and its neighboring. i. Infrastructure/ roads The local interstates within the city are the leading ideal for conveying goods or products to both east-west and south-west of the town. Most companies like that of trucking find the city ideal for distribution of products. Some of the interstates found in and within the city of Pekin include I-155, I-474 and I-74. These highways do not only help with traffic congestion within the city but also connects the city to cities within the Tazewell County and the neighboring counties (Fujita and These, 2002). ii. River and Rail Rail and the river have been a key to expansion of industries within the city. The expansion of the railroad in the city have offered farmers new markets for marketing their products, has enabled easy import of manufactured products from factories in the eastern, and most notable, it has offered transport in the city. Illinois River is navigable hence enabling transportation of goods and products in and out of the city. Besides offering of transport, the river provides fish for food to the community and also provides entertainment as fishing game and boat racing, thus expanding the city for more establishments (Fujita and These, 2002). iii. Air travel Pekin Municipal Airport as made has been so prominent tool in the growth of the economy to the city of Pekin. It has been the fastest means of transporting and traveling within the city of Pekin. This has led to new business in the city, hence providing well-paying jobs. Also, it has enabled a busy and fast economy of the city as the cargos are being conveyed to their destiny on time (Fujita and These, 2002). b. Communication The city is well equipped with means of communication. Some of the companies providing communication in the city include Gallatin River Communications, MTCO, Ameritech, Cass Cable and Telephone Company. These companies have enabled easy and fast deliverance of information from one firm to another within the city. Well established communication has enhanced the security services which attract new investors into the city. All these have led the city to expand its proximities (Fujita and These, 2002). c. Industrialization The city of Pekin has developed, and it is still creating more industries within the city and its neighboring. This has been enabled with the help of Economic Development Council of Central Illinois (EDC). The EDC is in charge of updating and developing a Comprehensive Economic Development Strategy (CEDS) for the Pekin city. Through CEDS, the city has been able to plan a process that guide the city economy. The process has created new jobs, adapted stable and expandable economies and improved living conditions. It offers a device for managing the efforts of people, local government, private industries and organizations apprehensive with the city economic development. All projects must be in accordance with objectives and goals set forth by CEDS, to be licensed for Economic Development Administration, for most planning programs, and economic. The establishments of the industries in the city have led to positive externalities, innovative of new technologies and economies of scale at the firm level. In Pekin, tourism and manufacturing is the only industry base and are discussed below in detail (Fujita and These, 2002). i. Tourism industry The Pekin City region has developed a visitor-based economy over the past years. The visitors generate a lot of income to the city economy, offer jobs to the city community, and promote quality of life through, leisure, culture, and art activities. Tourism in the city has components such as conventions, sports tourism, nature-based tourism, retail and cultural tourism. The Pekin Civic Center host national and regional events. When tourists visit the city they are accommodated in hotels, obtain food from restaurants, visit the zoo and museums within the city (Fujita and These, 2002). Some of Nature-based tourism includes wildlife watching, boating, hunting, canoeing, fishing and kayaking. Examples of sport tourism in the city include soccer tournaments, cross country events, softball tournaments, and basketball and NCAA Division II championships. Lastly, cultural and heritage tourism entice tourists to the city historical home, fairs and festival, antique centers, performances and concerts. The Pekin still has an opportunity to expand and be the prime tourist destination within the region. All the above have been successful due to the assistance from Tourism Strategy Group in the city. This group helps the city to invest on visitor-based opportunities and other assets presently located within the city, which in turn expand and enhance the city economy. The group is there to determine better exercise for tourism of activity in several contexts to enable the Pekin City become a tourist destination in the region (Fujita and These, 2002). ii. Manufacturing industry City of Pekin has a strong background history of manufacturing distinction. While the manufacturing is a regional industry, Pekin stands out to be the home of many manufacturing operations in the region. Some of the products manufactures in the city of Pekin include animal food, ethanol, bronze bushings, paperboard, hunting accessories, aluminum castings, hybrid corn, fertilizers and agricultural chemicals The city has managed to achieve this through the assistance of Manufacturing Strategy Group. The group makes sure that the manufacturing industry has a high and skillful workforce. Also, the group has assisted in building new and reinforcing existing manufacturing networks within the city. In addition, the group encourages more research and studies of new products in the city hence supporting the production of the prototypes (Fujita and These, 2002). Conclusion Urbanization and localization economies together with their sources are critical to support and maintain cities and agglomeration economies. However, is essential to keep in mind that long-term outcome of agglomeration economies role relates to the total economic activity in one region that is bordered by isolated area of less dense activity. The dense economic activity in a single region allows the expansion and growth of activity into other and the bordering regions. A slight reduction of fixed cost of production can upsurge the assortment of the region for further establishment of firms directing to loss of city density and perhaps the progress of a new city exterior of the old city, where increasing returns to scale and agglomeration occurred. If localization economies were the only substantial key factor to the development of cities with the omission of urbanization economies, then it will be understandable for every firm of the same sector creates its own city. However, in a realistic life, a city is more complicated than that; which is the course of combination of urbanization and localization economies to grow popular cities (Fujita and These, 2002). In regard to the development of Pekin city, it exists as a result of agglomeration force. The region was an agricultural center after the European explorers who were formers land in the location for settlement. As a result, of agricultural activities and the small trade that was carried along the Illinois River more people immigrated into the center. The area was then inhabited by different people from different society. This led to people sharing ideas, knowledge and information which are the principal key to localization economies. As people in the area started sharing knowledge and learning fast, they stated developing firms within the city to enhance their quality of living. This in turn, led to clustering of firm hence industrialization which is an ideal to agglomeration economies. The city of Pekin is believed to grow bigger in the near future due to projects that are being invented for the enhancement of living cost within the city. Reference Fujita M. and These J. (2002). Economics of Agglomeration; Cities, Industrial Location, and Regional Growth. Cambridge University Press. 1-27. The Position of Pekin City in the State of Illinois The map of Pekin in the State of Illinois Pekin Mall (East Court Village); Pekin, Illinois Econo Lodge & Suites, a Pekin hotel near Pekin Mall Read More