Source: UNIV OF MINNESOTA submitted to NRP
THE ECONOMIC GEOGRAPHY AND DYNAMICS OF BUSINESSES ON INDIAN RESERVATIONS: THE ROLE OF SPACE, DEMOGRAPHICS, AND TRIBAL INSTITUTIONS
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
1005513
Grant No.
2015-68006-22991
Cumulative Award Amt.
$498,943.00
Proposal No.
2014-05487
Multistate No.
(N/A)
Project Start Date
Feb 1, 2015
Project End Date
Jan 31, 2020
Grant Year
2015
Program Code
[A1631]- Agriculture Economics and Rural Communities: Rural Development
Recipient Organization
UNIV OF MINNESOTA
(N/A)
ST PAUL,MN 55108
Performing Department
Applied Economics
Non Technical Summary
Rural locations face unique development challenges, necessitating research-based Extensionprograms suited to such areas. Scholarship and Extension for rural Indian Reservations face twounique barriers, even relative to other rural/remote locations.(1) The Census Bureau, releases population data aggregated at the reservation level, but it does notdo so for its business data. Aggregate economic data are released in series like County BusinessPatterns (CBP), which is not available for reservations, in part because addresses in the Bureau'sbusiness registry are not geocoded for reservation location.(2) Tribal government sovereignty (from states) causes institutional structures which aresubstantially different from non-reservation rural counties (e.g. election frequency/formats, relianceon tribal courts, applicability of state business law). Thus, research and extension on rural areas ingeneral does not generalize to reservations.This project addresses both issues and generates research and extension suitable for ruralreservations by: geocoding census data for location in reservations under special agreement withthe Bureau; combining geocoded microdata for US firms with institutional data collected by theMinneapolis Fed to generate new reservation economic profiles and research on the role ofreservation institutions; incorporating business data and research into existing Extension economicdevelopment programming; using UM Extension's 'Futures Workshop' to pilot. This project makesresearch methods, tools and data routinely used in economic development nationwide accessible toreservations. We expect this will lead to closer collaboration between tribal leaders and extension,and, eventually, positive development outcomes for rural reservation economies.
Animal Health Component
50%
Research Effort Categories
Basic
30%
Applied
50%
Developmental
20%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
60860503010100%
Goals / Objectives
The overarching goal of this project is to develop the necessary data tools, research capacity, and Extension programming for the purpose of enabling economicdevelopment practitioners in Native American reservations to better understand their local economies.Specific objectives towards this goal include:1-Geocode census business data for location in reservations through an agreement with the Census Bureau. This will increase the Bureau's capacity for summarizing and reporting business data at geographic aggregations that are useful to Native American populations.2-Use the geocoded data to examine the extent to which the business climate in reservations is different from nearby or similar non-reservation counties in terms of business density, employment, industrial composition, technology, and business dynamics (rate of birth, growth, failure, etc.)3-Use a detailed database of reservation legal institutions and constitution features developed by the Federal Reserve Bank of Minneapolis and Co-PI Akee, and the geocoded data, to examine the impact of reservation institutions on economic development.4-Incorporate business data and research results into existing Extension economic development programming in Minnesota, to make it relevant to reservations.5-Explore opportunities for leveraging the increased data and research capacity to make the Existing extension and outreach infrastructure more relevant to Native American communities and economic development practitioners nationwide.
Project Methods
Censusbusinessdatafromtheselectedsurveyswillbeenhancedtosupportanalysisofthereservationbusinesssectorandprovideanalysesofwhy thissectorisdifferentfromitsoff-reservationcounterpart.Thetwomaindataenhancementsinclude(1)codingCensusbusinessmicrodatacollectedunderTitle13,Chapter5,forreservationlocations,and(2)linkingthesedatatoauniquedatabaseofreservationinstitutionalclimatefactors.Econometricanalysiswillthencomparethereservationandoff-reservationbusinesssectorsonthreedimensionsprominentintheeconomicgeographyliterature:firmtechnology,dynamics(ratesofentry,growthandsurvival),andspatialdensity.Ingeneral,severaltechniqueswithintheframeworkofmultivariateregressionanalysiswillbeusedtodisentanglehowcomplexforcesshapebusinesscharacteristicsonandoffreservations.Estimationofproductionfunctions viaOrdinaryLeastSquare(OLS)Regressions willbeemployedtoexaminetechnology. Survivalanalysis(e.g.hazardmodels) will be used tostudyfirmdynamics, andcensoredregressionmodels will be used tostudydensity.TheprojectwillprovideoutreachtotheCensusBureauintheformofatechnicalreportthatdetailsitsfindingswithrespecttosamplesizes,representation,andpotentialimprovements.Inaddition,UMExtensionwillmodifyoneoftheirexistingprogramstomakeitavailabletoNativeAmericancommunities.Resultsfromtheresearchcomponent,anysummarydataapprovedforrelease,andlessonslearnedfrompilottestingtheworkshop,willbedisseminatedbyUMExtensionandtheFederalReserveBank.

Progress 02/01/15 to 01/31/20

Outputs
Target Audience:1. US Census Bureay 2. Tribal Leaders and Economic Development professionals 3. Researchers and Users of Census Data 4. Extension Professionals Changes/Problems:We were sucessful in improving the Census Microdata and generating reservation indicators for all US businesses the Bureau has data on and completed research that provides the first view of how reservation businesses differ from other nearby areas. Our efforts to disseminate research results and generate outreach matterial based on our own work were also sucessful. We were not able to generate publically available summary statistics that other practitioners can use readily due to how the disclosure process works within the Census Bureau. Work produced in FSRDCs can be released once certain criteria are satisfied, but this process cannot be used for releasing aggregate statistics at the community level. The Bureau would have to choose to produce a product intended for public use for wider use of the data this project enabled ot be achieved. However, this project greatly enhanced the technical capacity for the Census Bureau to do so if/when it finds it appropriate to do so. What opportunities for training and professional development has the project provided?Several of the project presentations were to government officials and fellow extension professionals. These were intended to introduce the augmented data from this project as a reasource. Examples include: TITLE: Measuring Economic Development in Indian Country EVENT: Department of the Interior webinar, September 12, 2016 TITLE: Establishment and Employment Density on American Indian Reservations, Compared to Nearby Counties EVENT: Federal Statistical Research Data Centers Research Conference, Texas A&M, September 15, 2016 TITLE: Indian Country Data Resources EVENT: University of Minnesota Extension Service Webinar, January 18, 2018 How have the results been disseminated to communities of interest?In addition to book chapters and working papers we also published extensive suplements that publish summary data and methods to the extent possible. These are intended to provide a more in deapth look to potential users of the data. We also wrote a confidential technica paper detailing our methods and procedures and documentig the programs we used to geocode the census micro data, making it possible for other researhcers to use the augmented microdata inside the FSRDCs. Finally we held multiple presentations and trainings to government officials, tribal leaders, extension professionals and fellow researchers. A list of such is below: TITLE: Measuring Economic Development in Indian Country EVENT: Department of the Interior webinar, September 12, 2016 TITLE: Establishment and Employment Density on American Indian Reservations, Compared to Nearby Counties EVENT: Federal Statistical Research Data Centers Research Conference, Texas A&M, September 15, 2016 TITLE: Establishment and Employment Density on American Indian Reservations, Compared to Nearby Counties EVENT: Federal Reserve System's Community Development Research Symposium, Washington, D.C., March 22, 2017 Title: Business dynamics in Indian Reservations Event: Annual Conference of the Federal Statistical Research Data Centers (FSRDC) UCLA, September 14th 2017 TITLE: Tribal-County Comparisons in Workforce Opportunity: Questions of Infrastructure and Social Capital EVENT: Tribal-Interior Budget Council, Twin Arrows Navajo Casino and Resort, AZ, July 24, 2017 TITLE: Reservation Establishments: Data from the U.S. Census Longitudinal Business Data and Integrated Longitudinal Business Data Sets EVENT: Annual Conference of The Federal Statistical Research Data Centers (FSRDC) UCLA, CA, September 14th 2017 TITLE: Indian Country Data Resources EVENT: University of Minnesota Extension Service Webinar, January 18, 2018 TITLE: Promoting Business Diversification as a Tribal Economic Development Strategy EVENT: Dept. of the Interior/Office of Indian Energy and Economic Development Staff Training, Shakopee, MN, February 27, 2018 TITLE: Promoting Business Diversification as a Tribal Economic Development Strategy EVENT: Reservation Economic Summit, Las Vegas, NV, March 7, 2018 TITLE: American Indian Business Dynamics Over the Great Recession? EVENT: Festschrift I, Honoring Stephen Cornell and Joseph Kalt, Harvard University, May 2, 2018 TITLE: Indigenous Peoples and Economics EVENT: National Economics Association Annual Conference, Salish Kootenai College, MT, June 14-16, 2018 TITLE: Reservations as Workplaces: Perspectives on Opportunities to Grow via Diversification EVENT: Festschrift II, Honoring Stephen Cornell and Joseph Kalt, University of Arizona,, November 2-3, 2018 TITLE: Panel Presentation on measuring economic activity in Indian Reservations EVENT: Brookings Symposium on the Future of American Indian Gaming, February 14, 2019 Title: The Economic Geography and Business Dynamics on Indian Reservations, Event: Federal Reserve Bank of Atlanta Brownbag Series, June, 27th 2018 What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? The first objective was fully acomplished. We worked within the Federal Statistical Research Data Center System (FSRDC) to produce geocodes for all emplyer businesses in the bureau's Business Register for years 2009-2012 as well as non-employers for year 2009. We then established if the location of each business was in a federally recognized Indian Reservation and created geographic indicators of such as well as geographic codes idenitfying the specific reservation. This work makes it possible for the first time to be able to use Census data to construct business statistics for Indian Reservations. Under the second and third objectives we compared reservation employment and economic patterns to nearby geographically similar non-reservation areas as well as business dynamics (business survival rates) over the same areas. We also examined predictors of such, including economic conditions as well as regulations related to gaming. Specifically, the project made progress in evaluating how the reservation business sector compares to the off-reservation business sector by focusing on a group of 277 federally recognized American Indian reservations in the contiguous 48 states for which Census demographic data were available to support analysis. This group of reservations was compared to a group of 514 counties that were spatially near at least one of the included reservations. These counties were further refined by the team's creation of "county complements," which are the portions of counties outside of federally recognized American Indian reservations. With this data, we found some important business sector differences between the reservation group and the county complement group. The team compared establishment and job counts from cross-sections of employers and non-employers across these two types of areas. Although the percentage of establishments in each of the 2-digit NAICS industries was similar for reservations and county complements, reservations had nearly a third fewer establishments per area resident on average. The extent of the reservation deficit varied by sector; regression analysis showed that deficits tended to be deeper for small (by population) reservations, which may have implications for Census survey methodologies. By contrast, reservations had about the same or slightly more employer-provided jobs per resident as the county complements, but this was due to very high job numbers in a few sectors, mainly Arts/Entertainment/Recreation, Accommodations and Lodging, and Public Administration. The team demonstrated that reservations' high jobs per resident in the Arts/Entertainment/Recreation sector was very heavily driven by jobs in the gaming industry (NAICS 7132). In many other sectors, reservations had job as well as establishment deficits, and in these sectors regression analysis also showed a tendency toward deeper deficits in low population reservations. Findings for the ILBD were broadly similar, except the revenue replaced jobs as a measure of establishment size and for that metric the disproportionately high sector on reservations was retail, not Arts/Entertainment/Recreation. However, when results for the LBD and ILBD were combined (using the simple assumption of one job per ILBD establishment), the overall results for establishment and job numbers were similar to those for the LBD. These findings may have implications for Census survey methodologies. They suggest that establishment counts are significantly lower (relative to area population) on reservations than in nearby county areas, that jobs on reservations are highly concentrated in a few industries, and that reservation establishment and (in some sectors) job deficits vary with population size. These spatial density results are summarized in two CES Discussion Papers (17-57 and 18-50) and two working papers for the Federal Reserve Bank of Minneapolis's Center for Indian Country Development (CICD). They are also the core of a chapter published in a Cambridge University Press book (proposed title Private Sector Economies for Native America: Entrepreneurship for the Seventh Generation) edited by Miriam Jorgensen, Robert Miller, and Daniel Stewart. The two CICD working papers were also each accompanied by a supplemental working paper listing detailed simulation results by sector and model. Dynamic analyses linked the geocoded businesses to the Bureaus Longitudinal Busines Database (LBD) for 2007-2012 and linked a geocoded version of the 2007 LBD to the 2007 Survey of Business Owners (SBO) and conducted work on employer dynamics differentials in reservations. We examined differences in business establishment survival patterns over time by virtue of their location on or off a reservation. We find that business establishments located on American Indian reservations have higher survival rates than establishments located in adjacent counties. These results are particularly strong for the education, arts and entertainment, wholesale and retail, and public administration industries. While we were not fully able to explain this result, it is consistent with the business establishments being positively selected with respect to their "fitness for survival" given the large obstacles necessary to start a business on a reservation in the first place. Alternatively, there may be certain safeguards in a reservation economy that protects business establishments from external economic shocks. Under objectives 4 and 5 we incorporated information on data availability and specific results from our research to a great number of presentations to Tribal Leaders, other government officials and fellow extension professionals. A full list of presentations is provided below under the dissemination section. While we consider the resulting programming that was feasible with the improved Census Data a success, some limitations on what was feasible did arise. Due to the Bureau's confidentiality rules and internal policies, the disclosure request process applicable to FSRDC projects does not allow for requesting summary statistics published for specific reservations by industry to create public data that is comparable to the data available for counties in publications like the County Business Patterns.

Publications

  • Type: Book Chapters Status: Published Year Published: 2019 Citation: Akee, Randall, Elton Mykerezi, and Richard M. Todd. Opportunities to Diversify: Reservation Workplaces and Job Numbers Compared to Nearby County Areas. In Jorgensen, Miriam, Robert Miller, and Daniel Stewart (eds.), Private Sector Economies for Native America: Entrepreneurship for the Seventh Generation. 2019, Cambridge University Press.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2018 Citation: Akee, Randall, Elton Mykerezi, and Richard M. Todd. 2018. Reservation Nonemployer and Employer Establishments: Data from U.S. Census Longitudinal Business Databases. Federal Reserve Bank of Minneapolis, Center for Indian Country Development Working Paper Number 2018-01 and U.S. Census Bureau, Center for Economic Studies Discussion Paper Number 18-50.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2018 Citation: Akee, Randall, Elton Mykerezi, and Richard M. Todd. 2018. Supplement to Reservation Nonemployer and Employer Establishments. Federal Reserve Bank of Minneapolis, Center for Indian Country Development Working Paper Number 2018-02.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2017 Citation: Akee, Randall, Elton Mykerezi, and Richard M. Todd. 2017. Reservation Employer Establishments: Data from the U.S. Census Longitudinal Business Database. Federal Reserve Bank of Minneapolis, Center for Indian Country Development Working Paper Number 2017-02 and U.S. Census Bureau, Center for Economic Studies Discussion Paper Number 17-57.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2017 Citation: Akee, Randall, Elton Mykerezi, and Richard M. Todd. 2017. Supplement to Reservation Employer Establishments. Federal Reserve Bank of Minneapolis, Center for Indian Country Development Working Paper Number 2017-03.


Progress 02/01/19 to 01/31/20

Outputs
Target Audience:Extension personnel, academics interested in Indigenous Economics, Tribal leaders. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?Through numerous presentations in academic and practitioner oriented venues. A full list of presentations will be included with the final report. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? We completed a first level of analysis using the linked longitudinal data and made the findings public in a working paper. The paper was subsequently released as a Center For Economic Studies working paper by the Census Bureau.

Publications

  • Type: Conference Papers and Presentations Status: Published Year Published: 2020 Citation: Akee, Randall, Elton Mykerezi, and Richard Todd. Business Dynamics on American Indian Reservations: Evidence from Longitudinal Datasets. US Census Bureau, Center for Economic Studies, 2020.


Progress 02/01/18 to 01/31/19

Outputs
Target Audience:Extension personnel,academics interested in Indigenous Economics, Tribal leaders. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?Multiple presentations in practitioner venues. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Further analysis of longitudinal data was performed. Longitudinal business lincages for employer establishments were tested and longevity of business establishments across reservations and other rural areas was compared.

Publications


    Progress 02/01/17 to 01/31/18

    Outputs
    Target Audience:The Census Bureau, Extension professionals and economi developers and academics interested in Indegenous Economics. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?Practitioner oriented conferences and a presentation to Extension colleagues. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

    Impacts
    What was accomplished under these goals? Work this year focused on geocoding and testing the quality of non-employer businesses. These are important as much of the enterprenural activity starts as such. A CES working paper detailing differences in non-employer businesses in reservations relative to neraby rural areas wes bublished. We presented this work inseveral practitioner venues (full list of presentations will be provided with the final report).

    Publications

    • Type: Conference Papers and Presentations Status: Published Year Published: 2018 Citation: Akee, Randall, Elton Mykerezi, and Richard M. Todd. Reservation Nonemployer and Employer Establishments: Data from US Census Longitudinal Business Databases. US Census Bureau, Center for Economic Studies, 2018.


    Progress 02/01/16 to 01/31/17

    Outputs
    Target Audience:US Census Bureau, academics interested in Inigenous Economics, Extension personnel, Tribal leaders and economic development practitioners. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?Multiple presentations at conferences for Extension professionals and economic development practitioners. A full list of all events will be provided with the final report. What do you plan to do during the next reporting period to accomplish the goals?Will test longitudinal links and examine if predictors of business survival are different in reservations.

    Impacts
    What was accomplished under these goals? Geocoding was completed and tested. The geocoded data was used to publish a Center for Economic Studies (CES) working paper and a data suplement detailing differences in business characteristics between reservations and nearby rural areas.

    Publications

    • Type: Conference Papers and Presentations Status: Published Year Published: 2017 Citation: Akee, Randall, Elton Mykerezi, and Richard M. Todd. Reservation employer establishments: Data from the US Census longitudinal business database. No. 17-57. 2017.
    • Type: Other Status: Published Year Published: 2017 Citation: Akee, Randall, Elton Mykerezi, and Richard M. Todd. "Supplement to Reservation Employer Establishments." Federal Reserve Bank of Minneapolis, Center for Indian Country Development Working Paper 2017-03 (2017).


    Progress 02/01/15 to 01/31/16

    Outputs
    Target Audience:Census Bureau. We have been in communication with Research Data Center officials to update on progress with data work and make arrangements for meeting census disclosure review requirements. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals?a-Clear the first paper for disclosure and presesnt it in conferences. b-Complete and quality test the microdata geocoding and longitudinal linking to complete goal 1. c-produce a working paper that furthers goals 2 and 3.

    Impacts
    What was accomplished under these goals? 1-Geogocoding of business data for location in reservation was completed and quality-tested for most years. Longitudinal links across years have also been completed. The data work is on schedule. 2-The geocoded data have been used to examine the differences in business density by industry between reservations and non-reservation rural counties. A paper is under disclosure review with the Census Bureau. Once the Bureay clears it for disclosure it will be posted publically as a Center for Economic Studies, working paper at theU.S. Census Bureau site (https://ideas.repec.org/s/cen/wpaper.html).

    Publications