Journal Article

The downturn in the New England economy: what lies behind it?

Abstract: After a long period of vigorous growth--a period in which New England grew faster than the rest of the United States--employment in New England leveled off in 1989. This slowdown represents both a cyclical adjustment and a disturbing erosion in New Englands competitive position. ; To help clarify the causes of the downturn and the implications for the regions future development, this article develops a framework for analyzing regional economies, applies that framework to New England and other regions of interest, and examines New Englands share of national markets in key industries. The author finds that New Englands strong overall growth since 1984 was based on an unsustainable boom in construction, which masked problems in the regions economic base going back at least five years.

Keywords: Economic conditions - New England; New England; Federal Reserve District, 1st;

Bibliographic Information

Provider: Federal Reserve Bank of Boston

Part of Series: New England Economic Review

Publication Date: 1990

Issue: Jul

Pages: 53-65