Researchers from Federal Reserve Bank of Cleveland Discuss Findings in Economic Development (The Growing Role of Community Development Finance In Economic Development): Economics – Economic Development

2025 OCT 01 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Investigators publish new report on Economics - Economic Development. According to news originating from Cleveland, Ohio, by NewsRx correspondents, research stated, “There is a breadth of research on the association between economic development (EcD) investments and economic growth, but less studied is how community development (CD) investments can contribute to neighborhood and regional prosperity. This paper explores how the growing pool of CD resources, namely Community Development Financial Institution (CDFI) investments and New Market Tax Credit (NMTC) allocations, target low-to-moderate income neighborhoods and contribute to broader economic development efforts.”

Our news journalists obtained a quote from the research from the Federal Reserve Bank of Cleveland, “Using census tract-level data collected by the CDFI Fund from 2012 to 2021, the authors investigate the scope of CDFI investments and NMTC allocations on business and employment growth in those tracts. The authors find that these CD investments are strongly focused in the intended geographic areas of distressed and underserved census tracts and are associated with business growth in tracts that receive funding.”

According to the news editors, the research concluded: “These patterns are strong for CDFI support, but more uncertain for NMTCs.”

This research has been peer-reviewed.

For more information on this research see: The Growing Role of Community Development Finance In Economic Development. Economic Development Quarterly, 2025. Economic Development Quarterly can be contacted at: Sage Publications Inc, 2455 Teller Rd, Thousand Oaks, CA 91320, USA.

The news correspondents report that additional information may be obtained from Merissa Piazza, Federal Reserve Bank of Cleveland, Community Dev, 1455 East 6TH St, Cleveland, OH 44114, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1177/08912424251362127. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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