ACCESSION NO: 0134868 SUBFILE: CRIS
PROJ NO: ARZT-137146-R-18-107 AGENCY: CSREES ARZT
PROJ TYPE: HATCH PROJ. STATUS: REVISED MULTISTATE PROJ NO: NE-162
START: 01 OCT 1997 TERM: 30 SEP 2002 FY: 1999

INVESTIGATOR: Cory, D. C.

PERFORMING INSTITUTION:
AGRI & RESOURCE ECONOMICS
UNIVERSITY OF ARIZONA
TUCSON, ARIZONA 85721

RURAL ECONOMIC DEVELOPMENT: ALTERNATIVES IN THE NEW COMPETITIVE ENVIRONMENT

OBJECTIVES: OBJECTIVE 3 Identify changing public policy initiatives and
relationships and their impacts on rural economies and governments and
investigate the effectiveness of alternative policy instruments to affect
rural economic and fiscal viability and structure.

APPROACH: 1. Use cross-sectional models with county-level data to examine
whether or not the industrial mix in the county affects the costs and
revenues of local government. 2. Develop a state level social accounting
matrix and computable general equilibrium model for Arizona to examine the
economic impacts of alternative state fiscal and expenditure policies. Do
the same analysis using a model of the metropolitan Phoenix area and the
rest of the state.

PROGRESS: 1999/01 TO 1999/12
G Frisvold completed J Leones' project National Parks & Rural Development
in the Southwest. In 1997, the Kaibab National Forest released a Draft
Environmental Impact Statement considering development alternatives to
expand lodging and other services outside Grand Canyon National Park. Most
controversial has been the proposal to construct the gateway community,
Canyon Forest Village (CFV). The project is contingent on a land exchange
where the CFV developer would receive US Forest Service lands outside the
Park in exchange for 2,200 acres of private holdings. Construction of CFV
would mean significant commercial development of the park boundary. The
land exchange would also reconfigure the spatial pattern of public and
private land ownership adjacent to the park. By doing so, it would alter
the distribution of proximity rents capture by existing hotels,
restaurants, and other establishments serving park tourists in outlying
communities. Land exchanges place federal agencies managing public lands at
the center of local development, investment and private land use issues
beyond their administrative borders. Using the debate over gateway
development near the Park, the project drew policy lessons concerning park
management and its relationship to surrounding communities. The project
examined the role of Park visitation in the local economy and potential
economic impacts of the land exchange. R Tronstad worked in rural
development activities relating to direct farm marketing and tourism
activities, value added agriculture education, and assistance to the Desert
Durum Wheat Cooperative formed this last year in AZ.

IMPACT: 1999/01 TO 1999/12
Organized statewide conference "Direct Farm Marketing and Tourism,"
Phoenix, AZ 3/9/00. Presentation to Tucson-Mexico Project "Strategic
Economic Development Vision of Agribusiness in the Arizona-Sonora Region,"
Tucson, AZ 1/28/00. Planning committee Member of Education Tracks for 2001
North American Farmers Direct Marketing Association Conference, Mesa AZ
1999-2001.

PUBLICATIONS: 1999/01 TO 1999/12
1. Leones, J and G Frisvold. Park Planning Beyond Park Boundaries: A Grand
Canyon Case Study. In National Parks and Rural Development in the United
States. G Machlis and D Field (eds). Washington, DC: Island Press
(forthcoming 2000).
2. Tronstad, R. "Where the Value is Added in Food," Journal of Cooperative
Development, Summer 1999.