The Political Economy of Black Business Development


This paper investigates the relationship between African American local political power and outcomes for African American-owned businesses. It is hypothesized that the presence of an African American mayor and majority in the City Council would indicate a context of greater political  power that would facilitate African American-owned business growth. Using regression analysis, we test the impact of local political representation on the number of businesses and sales volume. Our results show that cities with African American mayors have been more conducive than other cities to African American economic development both with regard to the numbers and sales activity. However, concentration of African American po­litical power beyond fifty percent of City Council seats has diminishing returns.


In Copyright - Non-Commercial Use Permitted

This Item is protected by copyright and/or related rights. You are free to use this Item in any way that is permitted by the copyright and related rights legislation that applies to your use. In addition, no permission is required from the rights-holder(s) for non-commercial uses. For other uses you need to obtain permission from the rights-holder(s).