The purpose of this research is to connect community development and local economic development to determine the impacts of the local economy on economic wealth and quality of life. This will be explored through a community development lens examining how the community, and its location and capitals (specifically economic, social and human capitals), impact the dependent capital variables. Laughlin’s (2012) research design of social capital and its impact on economic wealth used United States county samples, which reflect many local economies. This dissertation builds on Laughlin’s model and explores local economies at a Zip Code Tabulation Area (ZCTA) level. It also incorporates elements of Chaskin’s (2001) model, which explores community capacity as social and human capital, Benhabib and Spiegel’s (1994) human capital model, Levine and Renelt’s (1992) economic capital model, Krugman’s location and economic geography (1998), Emory and Flora’s community capital framework (2006), and concepts of quality of life and economic wealth by Schumacher (1964) and Jacobs, (1970). Economic wealth and higher quality of life can represent community development outcomes; there must be a balance within community systems and an exploration of these capitals (Emory and Flora, 2006).

This research expands beyond exploring impacts of social capital on economic wealth to include multiple community capitals. Furthermore, it tests economic measurements and their impact on a local economic level as opposed to a regional/state level, thus providing a deeper understanding of local economies and their impact on communities.

This dissertation provides a new baseline for understanding the relationship between community and economic development, its specific connections and the overall impacts of local economic activity. This will allow a richer exploration into economic activity and perspectives about how economic policy may impact communities. Research and literature has shown the immense advantages of strong local economies in contrast to regional/state economies and globalization; this will provide the necessary research bridge to connect with community development. The outcome of this research explains the impacts of economic, social and human capital on economic wealth and quality, specifically within local economies.