Economy of New York City 3848717 222408330 2008-06-29T05:19:01Z Iriefrank 157231 Topic sentence didn't make any sense. Corrected to reflect what followed in the paragraph. [[Image:NASDAQ.JPG|thumb|150|The [[NASDAQ MarketSite]] in Times Square.]] [[Image:NYC-WorldFinancialCenter.jpg|thumb|200|The [[World Financial Center]], containing the offices of many financial firms.]] The '''economy of [[New York City]]''' is the largest regional economy in the [[United States]] and one of the largest in the world. The city is a global center for business and commerce. It is one of the leading financial cities of the world and a premier headquarters location for leading global financial services companies.<ref>[http://www.economist.com/specialreports/displaystory.cfm?story_id=9753240 Magnets for money | Economist.com<!-- Bot generated title -->]</ref> The financial, insurance, and real estate industries form the basis of New York's economy. The city is also the most important center for mass media, journalism and publishing in the United States, and is the preeminent arts center in the country. Medical research, technology, and fashion are also significant sectors. Manufacturing, although declining, remains consequential. The [[New York Stock Exchange]] is by far the largest stock exchange in the world by [[market capitalization]] of listed companies. The [[NASDAQ]] has the most companies listed and is third largest in the world by [[market capitalization]] of listed companies, although since the [[NASDAQ]] is an entirely electronic exchange, its trading does not take place physically in New York City. Many international corporations are headquartered in the city, including more [[Fortune 500]] companies than any other city. New York City is a global hub of international business and commerce and is one of three "command centers" for the world economy (along with [[London]] and [[Tokyo]]).<ref>{{cite book|author=[[Saskia Sassen|Sassen, Saskia]]|title=The Global City: New York, London, Tokyo|year=2001|publisher=Princeton University Press|edition=2nd edition|isbn=0691070636}}</ref> The city is a major center for finance, insurance, real estate, media and the arts in the United States. The New York metropolitan area had an estimated [[gross metropolitan product]] of $952.6 billion in 2005, the largest regional economy in the United States.<ref name="NYC economy">{{cite web |url=http://www.usmayors.org/74thWinterMeeting/metroeconreport_January2006.pdf |format=PDF |publisher=The United States Conference of Mayors |title=The role of metro areas in the U.S. economy |date=[[January 13]], [[2006]] |accessdate=2006-07-19}}</ref> The city's economy accounts for the majority of the economic activity in the states of New York and New Jersey.<ref name="NYC economy" /> Many major corporations are headquartered in New York City, including 44 [[Fortune 500]] companies.<ref>{{cite web |url=http://www.nycedc.com/Web/NYCBusinessClimate/FactsFigures/FactsFigures.htm |title=NYC Business Climate - Facts & Figures |publisher=New York City Economic Development Corporation|accessdate=2007-06-08}}</ref> New York is also unique among American cities for its large number of foreign corporations. One out of ten private sector jobs in the city is with a foreign company.<ref>{{cite news|title=Keeping the Economy Growing |author=Wylde, Kathryn |publisher=Gotham Gazette |date=[[January 23]], [[2006]] |url=http://www.gothamgazette.com/article/fea/20060123/202/1727 |accessdate=2006-07-19}}</ref> New York City is home to some of the nation's — and world's — most expensive office space. 450 [[Park Avenue (Manhattan)|Park Avenue]] was sold on [[July 2]], [[2007]] for $510 million, about $1,589&nbsp;per&nbsp;square&nbsp;foot ($17,104/m²), breaking the barely month-old record for an American office building of $1,476&nbsp;per&nbsp;square&nbsp;foot ($15,887/m²) set in the June 2007 sale of 660 Madison Avenue.<ref>Quirk, James. [http://www.northjersey.com/page.php?qstr=eXJpcnk3ZjczN2Y3dnFlZUVFeXk4NDImZmdiZWw3Zjd2cWVlRUV5eTcxNjI5NzEmeXJpcnk3ZjcxN2Y3dnFlZUVFeXkyMg== "Bergen offices have plenty of space"], ''[[The Record (Bergen County)]]'', [[July 5]], [[2007]]. Accessed [[July 5]], [[2007]]. "On Monday, a 26-year-old, 33-story office building at 450 Park Ave. sold for a stunning $1,589 per square foot, or about $510 million. The price is believed to be the most ever paid for a U.S. office building on a per-square-foot basis. That broke the previous record -- set four weeks earlier -- when 660 Madison Ave. sold for $1,476 a square foot."</ref> The [[New York Stock Exchange]], located on Wall Street, and the [[NASDAQ]] are the world's first and second largest stock exchanges, respectively, when measured by average daily trading volume and overall market capitalization.<ref>{{cite web |authors=Claessens, Stjin |title=Electronic Finance: Reshaping the Financial Landscape Around the World |publisher=The World Bank |date=September 2000 |url=http://www.worldbank.org/research/interest/confs/upcoming/papersjuly11/E-finance.pdf |format=PDF |accessdate=2007-03-27}}</ref> Financial services account for more than 35 percent of the city's employment income.<ref>{{cite web |url=http://www.newyorkfed.org/research/current_issues/ci12-1.pdf|format=PDF |title=Challenges Facing the New York Metropolitan Area Economy |author=Orr, James and Giorgio Topa |work=Current Issues in Economics and Finance - Second District Highlights |publisher=New York Federal Reserve |date=Volume 12, Number 1, January 2006|accessdate=2007-06-05}}</ref> Real estate is a major force in the city's economy, as the total value of all New York City property was $802.4 billion in 2006.<ref name="NYC real estate">{{cite web |title=Tentative Assessment Roll: Fiscal Year 2008 |publisher=New York City Department of Finance |date=[[January 15]], [[2007]] |url=http://www.nyc.gov/html/dof/html/pdf/07pdf/tent-ass-roll-07-08t.pdf |format=PDF |accessdate=2007-03-21}}</ref> The [[Time Warner Center]] is the property with the highest-listed market value in the city, at $1.1 billion in 2006.<ref name="NYC real estate" /> The city's television and film industry is the second largest in the country after [[Hollywood, Los Angeles, California|Hollywood]].<ref>{{cite web |url=http://www.nyc.gov/html/film/html/news/stats.shtml |title=NYC Film Statistics |publisher=Mayor's Office of Film, Theatre, and Broadcasting |accessdate=2007-06-07}}</ref> Creative industries such as new media, advertising, fashion, design and architecture account for a growing share of employment, with New York City possessing a strong competitive advantage in these industries.<ref>{{cite journal |author=Currid, Elizabeth |title=New York as a Global Creative Hub: A Competitive Analysis of Four Theories on World Cities |journal=Economic Development Quarterly |year=2006 |volume=20(4) |pages=pp. 330–350 |doi=10.1177/0891242406292708}}</ref> High-tech industries like bioscience, software development, game design, and Internet services are also growing, bolstered by the city's position at the terminus of several [[transatlantic telephone cable|transatlantic fiber optic trunk lines]].<ref>{{cite web |title=Telecommunications and Economic Development in New York City: A Plan for Action|publisher=New York City Economic Development Corporation |date=March 2005 |url=http://www.nycedc.com/about_us/TelecomPlanMarch2005.pdf |format=PDF |accessdate=2006-07-19}}</ref> Other important sectors include medical research and technology, non-profit institutions, and universities. Manufacturing accounts for a large but declining share of employment. Garments, chemicals, metal products, processed foods, and furniture are some of the principal products.<ref>{{cite web |url=http://www.nyc.gov/html/imb/downloads/pdf/whitepaper.pdf |format=PDF |title=Protecting and Growing New York City's Industrial Job Base |publisher=The Mayor's Office for Industrial and Manufacturing Business |date=January 2005 |accessdate=2006-07-19}}</ref> The food-processing industry is the most stable major manufacturing sector in the city.<ref name="food manufacturing">{{cite web |url=http://www.nyc.gov/html/imb/downloads/pdf/more_than_link_food_chain.pdf |format=PDF |title=More Than a Link in the Food Chain |publisher=The Mayor's Office for Industrial and Manufacturing Business |accessdate=2007-02-14 |date=February 2007}}</ref> Food making is a $5 billion industry that employs more than 19,000 residents, many of them immigrants who speak little English. Chocolate is New York City's leading specialty-food export, with $234 million worth of exports each year.<ref name="food manufacturing" /> ==International trade== New York is unique among American cities for its large number of foreign corporations. One out of every ten private sector jobs in the city is with a foreign company. Often this makes the perspective of New York’s business community [[internationalist]] and at odds with [[Washington, D.C.|Washington’s]] foreign policy, trade policy, and visa policy.[http://www.gothamgazette.com/article/fea/20060123/202/1727] China has been New York's leading growth market for exports since 2000. The New York Metropolitan Region is home to more than half of the 32 largest Chinese companies with offices in the United States. These companies represent a broad array of industries including shipping, steel, energy and manufacturing firms, and services. Many have chosen to open headquarters in New York in anticipation of eventual listing on the respective New York stock exchanges and entering U.S. capital markets.<ref>"New York and China: Building a Global Parternship." The Partnership for New York City, April 2006.[http://www.nycp.org/PDF/china%20brief_0406.pdf]</ref> New York’s tax code differs from many other states in ways that substantially reduce the effective tax rate for many corporations, particularly foreign firms setting up U.S. headquarters. New York City currently boasts seven Chinese daily newspapers, two Chinese language television stations, and the largest Chinese neighborhood in the United States. New York area airports provide 12 daily flights to Hong Kong and five to Beijing, the most flights out of the eastern half of the United States.<ref>"New York and China: Building a Global Parternship." The Partnership for New York City, April 2006.[http://www.nycp.org/PDF/china%20brief_0406.pdf]</ref> In one measure of how international New York City's economy is, data compiled by the agents Knight Frank show foreign owners make up 34% of sales in the city's prime residential market. New York ranks ahead of Paris, where such sales account for 27%, Hong Kong (13%), and Sydney (9%). London, however, is the most cosmopolitan world city in terms of property ownership; more than 51% of homes there worth more than £2m ($3.8m, EU3m) sold in 2005 have gone to overseas buyers from Russia, the Middle East and elsewhere.<ref>"London's top housing draws the world's billionaires." 25 August 2006 ''Financial Times''.[http://news.yahoo.com/s/ft/20060825/bs_ft/fto082520061743205258]</ref> International shipping has always been a major part of the city's economy because of New York's natural harbor, but with the advent of [[containerization]] most cargo shipping has moved from the Brooklyn waterfront across the harbor to the [[Port Newark-Elizabeth Marine Terminal]] in New Jersey. Some cargo shipping remains; for example, Brooklyn still handles the majority of cocoa bean imports to the United States.<ref>{{cite news|url=http://query.nytimes.com/gst/fullpage.html?res=9506E0DB173EF931A25750C0A96F958260&sec=travel&pagewanted=print|date=1999-03-12|title=My Brooklyn; Still a Contender on the Waterfront|first=Douglas|last=Century|accessdate=2006-07-19|publisher=New York Times}}</ref> ==Corporate sector== [[Midtown Manhattan]] is the largest [[central business district]] in the world, while the [[Financial District, Manhattan|Financial District]] is also the third largest in the United States. New York City has long been the dominant business center of the United States, but with the city's fiscal crisis in the 1970s a new trend began to develop resulting in corporate headquarters and subsidiaries gradually moving to the suburbs and other regions. Since the 1990s, however, New York has regained its magnetic force and is re-establishing its claim as the city of corporate headquarters. The number of headquarters and subsidiaries in Manhattan has more than doubled since 1990, according to the federal Department of Labor. For the very largest American corporations it is important to be in a [[global city]]. Surveys done by New York's economic planners have also shown that the personal preference of the chief executive is a factor in determining whether a company moves to or from New York. In 2005 there were 602 stand-alone headquarter operations for major companies in the city.[http://www.nytimes.com/2006/07/03/nyregion/03nyboss.html] The 280,000 workers in the finance industry collect more than half of all the wages paid in Manhattan, although they hold fewer than one of every six jobs in the borough. The pay gap between them and the 1.5 million other workers in Manhattan continues to widen, causing some economists to worry about the city’s growing dependence on their extraordinary incomes. Those high salaries contribute to job growth, but most of this job growth occurs in lower-paying service jobs in restaurants, retail and home health care and not many jobs in highly paid areas.[http://www.nytimes.com/2006/11/23/nyregion/23income.html?ref=nyregion] ===Finance and trade=== [[Image:New York Stock Exchange Flags.jpg|thumb|230px|The [[New York Stock Exchange]] is the largest in the world by dollar volume.]] Today, New York City is a leading center of [[finance]] in the [[world economy]], with [[Wall Street]] in [[Lower Manhattan]]'s [[The Financial District (Manhattan)|Financial District]]. The finance industry employs 355,000 workers as of October, 2007.<ref>http://www.nycedc.com/NR/rdonlyres/0E554747-DA7F-4CA8-8C17-12C66E1D0137/0/EconomicSnapshotDecember2007.pdf</ref> Manhattan is home to six major stock, commodities and futures exchanges: [[American Stock Exchange]], [[International Securities Exchange]], [[NASDAQ]], [[New York Board of Trade]], [[New York Mercantile Exchange]], and [[New York Stock Exchange]]. This contributes to New York City being a major [[Financial export| financial service exporter]], both within the United States and globally. [[List of major corporations based in New York City|Many corporations]] also have their headquarters in the city, including companies as prominent and diverse as Altria Group, Time Warner, American International Group, Pfizer, Bristol-Myers Squibb, JetBlue, Citigroup, DC Comics, Estée Lauder, and Sony Music Entertainment. Many other global companies have large offices in New York, such as General Electric. New York is also home to many of the leading [[investment banks]]. There are also a number of [[hedge funds]], [[brokerages]], [[investment managers]], and other [[financial service]] companies in the New York City area. As the North American terminus of the transatlantic [[fiber optic]] trunkline, New York has extremely high internet connectivity and is the leading international internet gateway in the United States with 430 Gbit/s of international internet capacity terminates. By comparison, the number two U.S. hub, Washington/Baltimore, has 158 Gbit/s of internet terminates.[http://www.nycedc.com/about_us/TelecomPlanMarch2005.pdf] Since the founding of the Federal Reserve banking system, the [[Federal Reserve Bank of New York]] in Manhattan's financial district has been where monetary policy in the United States is implemented, although policy is decided in Washington by the [[Federal Reserve Bank|Federal Reserve Bank's]] Board of Governors. The New York Fed is the largest, in terms of assets, and the most important of the twelve regional banks. It is responsible for the second district, which covers New York State and the New York City region, as well as Puerto Rico and the U.S. Virgin Islands. The New York Fed is responsible for conducting [[open market operations]], the buying and selling of outstanding [[Treasury security|US Treasury securities]]. In 2003, [[Fedwire]], the Federal Reserve's system for transferring balances between it and other banks, transferred $1.8 trillion a day in funds, of which about $1.1 trillion originated in the Second District. It transferred an additional $1.3 trillion a day in securities, of which $1.2 trillion originated in the Second District. The New York Federal Reserve is the only regional bank with a permanent vote on the [[Federal Open Market Committee]] and its president is traditionally selected as the Committee's vice chairman. The bank also has the largest gold repository in the world, larger even than [[Fort Knox]]. Its vault is 80 feet (25 m) beneath the street and holds $90 billion worth of gold bullion. {{seealso|Federal Reserve Bank of New York}} ==Media== {{main|Media of New York City}} New York is by far the most important center for American [[mass media]], [[journalism]] and [[publishing]]. The city is the number-one media market in the United States with 7% of the country’s television-viewing households. Three of the Big Four music recording companies have their headquarters in the city. One-third of all independent films are produced in the Big Apple. More than 200 newspapers and 350 consumer magazines have an office in the city. The book publishing industry alone employs 25,000 people. For these reasons, New York is often called "the media capital of the world." ===Film=== New York City's film industry is the nation’s second largest after [[Hollywood]] in California. Although much smaller, New York's film sector is growing rapidly and its billions of dollars in revenue makes it an important part of the city's economy.[http://www.nyc.gov/html/film/html/news/stats.shtml] It is also a growth sector; according to the Mayor's Office of Film, Theater and Broadcasting New York City attracted over 250 independent and studio films in 2005, an increase from 202 in 2004 and 180 in 2003. More than a third of professional actors in the United States are based in New York.<ref>"Creative New York." ''Center for an Urban Future'' Dec. 2005.[http://www.nycfuture.org/images_pdfs/pdfs/CREATIVE_NEW_YORK.pdf]</ref> The city's movie industry employs 100,000 New Yorkers, according to the Office, and about $5 billion is brought by the industry to the city's economy every year.<ref>"Hollywood Brings Its Cameras To a New New York." 19 Oct 2006 New York Sun.[http://www.nysun.com/article/41832?page_no=2]</ref> International film makers work in the city, as well. The [[Bollywood]] film ''[[Kal Ho Naa Ho]]'' was shot in New York City in 2003, and has proceeded to become the fourth-highest grossing Indian film of all time.<ref>New York City Economic Development Corporation. [http://www.newyorkbiz.com/International/IntFunFacts.html}</ref> The [[Kaufman-Astoria]] film studio in Queens, built during the [[silent film]] era, was used by the [[Marx Brothers]] and [[W.C. Fields]]. It has also been the set for ''[[The Cosby Show]]'' and ''[[Sesame Street]]''. The recently constructed [[Steiner Studios]] is a 15 acre (61,000 m²) modern movie studio complex in a former shipyard where ''The Producers'' and ''The Inside Man'', a [[Spike Lee]] movie, were filmed. Silvercup Studios revealed plans in February 2006 for a new $1 billion complex with eight soundstages, production and studio support space, offices for media and entertainment companies, stores, 1,000 apartments in high-rise towers, a catering hall and a cultural institution. The project is invisioned as a "vertical Hollywood" designed by [[Richard Rogers|Lord Richard Rogers]], the architect of the [[Pompidou Center]] in [[Paris]] and the [[Millennium Dome]] in [[London]]. It is to be built at the edge of the East River in [[Queens]] and will be the largest production house on the East Coast. Steiner Studios in Brooklyn would still have the largest single soundstage, however. Kaufman Studios plans its own expansion in the future. [[Miramax Films]], a [[Big Ten (movie studios)|Big Ten]] film studio, is the largest motion picture distribution and production company headquartered in the city. Many smaller independent producers and distributors are also in New York. ===Fashion and advertising=== Manhattan's [[Madison Avenue]] is [[metonym]]ous with the American [[advertising]] industry, while [[Seventh Avenue (Manhattan)|Seventh Avenue]] is nicknamed "fashion avenue" as it serves as an important center for the [[fashion]] industry. Ninety percent of the diamonds imported to the United States pass through New York, and most of these are handled and cut in the city's Diamond District on 47th Street between Fifth and Sixth Avenues. New York also has among the most important scenes for [[art]], [[music]], and [[theater]] in the U.S., with an increasingly active artists' community. The city also has a large [[tourism]] industry. According to the Center for Women's Business Research, there are nearly 250,000 women-owned firms in New York City. ==High tech== High-tech industries like software development, gaming design, and Internet services are also growing; New York is the leading international internet gateway in the United States, with 430 Gbit/s of international internet capacity terminates, because of its position at the terminus of the transatlantic fiber optic trunkline. By comparison, the number two U.S. hub, Washington/Baltimore, has 158 Gbit/s of internet terminates.[http://www.nycedc.com/about_us/TelecomPlanMarch2005.pdf] More than two-thirds of New Yorkers have Internet in their homes. ===Internet & telecom=== According to New York’s Economic Development Corporation, telecom carriers, cable companies, Internet service providers and publishers were a $23 billion industry in 2003. This represents over three percent of the city’s economy. The sector employs 43,000 city residents. In 2006 [[Google]] moved into 311,000 square feet of office space in the second-largest building in New York City, at 111 Eighth Avenue in Manhattan. The location is one of the most important "telecom hotels" in the world, a giant networking facility adjacent to the Hudson Street/Ninth Avenue fiber highway, one of the most critical Internet arteries in the world. Employing more than 500 people, it is Google's largest engineering complex outside of company headquarters. Google products engineered in the New York offices include Maps, Spreadsheets, Checkout, Blog search, and Mobile search. Google's large investment in its New York operations has led to speculation about new multimedia initiatives by the company. ===Medicine and biomedical research=== Medical services and research drive New York's major healthcare industry. The city has the most post-graduate life sciences degrees awarded annually in the United States, 40,000 licensed physicians, and 127 Nobel laureates with roots in local institutions. New York receives the second-highest amount of annual funding from the [[National Institutes of Health]] among all U.S. cities. Major publicly-traded biopharma companies include [[Bristol Myers Squibb]], Eyetech Pharmaceuticals, [[ImClone Systems]], [[OSI Pharmaceuticals]], Pfizer, [[Regeneron]], CuraGen, and Alexion Pharmaceuticals . [[Pfizer]] shifted 1,000 jobs to New York City from New Jersey, Missouri, Michigan and California in 2003. According to the Partnership for New York City, New York institutions create more biotechnology-related patents than any other metropolitan area in the United States, including [[New Haven]], home of [[Yale University]]'s medical research complex, which produces the greatest per capita output. The health care industry employs approximately 375,000 people in New York City, making it the city's largest employer. 40,000 physicians work at more than 70 hospitals in New York; the city's 20 public hospitals served 1.5 million people in 1998 alone. ==Manufacturing and Industrial Sector== There are over 233,000 jobs[http://www.nycedc.com/Library/Newsletters/EconomicSnapShot/Archive/EconomicSnapshotFebruary2006.pdf] in more than 10,000 New York City industrial businesses[http://www.nycedc.com/Industries/Manufacturing/index.html], with the highest concentration of industrial employment in Manhattan. This includes manufacturing, warehousing, utilities, and transportation. Manufacturing jobs average $41,000 annually (NYS DOL, 2nd Qtr 2005), about $10,000 more than comparable jobs in retail or restaurants. The manufacturing sector has the highest percentage of first-generation immigrants making up 64% of the workforce (NYC Dept. City Planning) and African Americans comprising 78% of the production workforce (2004 American Community Survey). These are small businesses, with an average size of 21 employees (NYS DOL, 2nd Qtr 2005). Examples of goods manufactured in the city include broadway costumes, custom-made cabinets, croissant for hotels, and wooden crates for shipping fine art. These items are labor-intensive and require collaboration between the end-user and the manufacturer. In recent years, as real estate and globalization pressures have increased, the remaining manufacturers have become more design-oriented and single customer-focused. To boot, production methods have become cleaner and more technology-driven. Despite the adaptability of New York manufacturers, there remain looming challenges to the sector’s survival. A 2003 city-sponsored survey of the industrial sector identified three major local challenges to retaining businesses: 1) high cost of real estate; 2) high costs of doing business; and, 3) uncertainty about land use policy. A 12,900 square foot biodiesel plant run by Tri-State Biodiesel, LLC will begin construction in Brooklyn in 2008. The facility will process used cooking oil collected by TSB from over 2000<ref>[http://www.tristatebiodiesel.com Tri-State Biodiesel :: Fuel of the Future... Today<!-- Bot generated title -->]</ref> New York restaurants with methanol and a catalyst to create biodiesel fuel. More than one million gallons of waste oil could be collected in Brooklyn every year according to a 2004 Cornell study. The fuel produces 78 percent less carbon-dioxide emissions than standard diesel. The food-processing industry is the most stable major manufacturing sector in the city.<ref name="food manufacturing">{{cite news|url=http://www.nyc.gov/html/imb/downloads/pdf/more_than_link_food_chain.pdf|title=More Than a Link in the Food Chain|publisher=The Mayor's Office for Industrial and Manufacturing Business|accessdate=2007-02-14|date=2007-02}}</ref> Food making is a $5 billion industry that employs more than 19,000 residents, many of them immigrants who speak little English. Chocolate is New York City's No. 1 specialty-food export, with $234 million worth of exports each year.<ref name="food manufacturing" /> ==References== <div class="references-small"> <references/> </div> ==See also== *[[List of major corporations based in New York City]] *[[New York Stock Exchange]] *[[Silicon Alley]] *[[Wall Street]] {{New York City}} [[Category:Economy of the United States|New York City]] [[Category:Economy of New York City| ]] [[ja:ニューヨーク市の経済]]