IDEAS home Printed from https://ideas.repec.org/a/bla/socsci/v88y2007i1p86-103.html
   My bibliography  Save this article

When Do States Pursue Targeted Economic Development Policies? The Adoption and Expansion of State Enterprise Zone Programs

Author

Listed:
  • Robert C. Turner
  • Mark K. Cassell

Abstract

Objective. The objective of this article is twofold. First, why did states adopt enterprise zones, which allow designated economically distressed areas to provide significant financial incentives to attract firms? Second, why did some states significantly increase the number of zones within the state and transform what began as a spatially targeted program aimed at helping poor places into a state‐wide incentive program aimed at improving the state's competitive position? We also demonstrate the value of examining how changes in a state's policy environment can undermine a policy innovation, namely, the adoption of place‐based economic development policies. Methods. We use event history analysis to model when states adopt enterprise zones and an event‐count model to estimate when states increase the number of enterprise zones, and thereby undermine the original intent of the program. Results. States with larger urban populations and neighboring states with enterprise zone programs are more likely to adopt enterprise zone programs. States are more likely to increase the number of enterprise zones when they have larger urban populations, more neighboring states with enterprise zone programs, professional legislatures, more centrist elected officials, and as the program ages. Conclusions. Although the adoption of enterprise zones signaled states' commitment to improve conditions in the most distressed areas of the states, that commitment gradually wanes in the face of internal political demands and external competition for investment and jobs. By extending our analysis to examine what happens after the adoption of enterprise zones, we develop a more pessimistic assessment of states' capacity to pursue spatially targeted economic development policies to help economically distressed areas.

Suggested Citation

  • Robert C. Turner & Mark K. Cassell, 2007. "When Do States Pursue Targeted Economic Development Policies? The Adoption and Expansion of State Enterprise Zone Programs," Social Science Quarterly, Southwestern Social Science Association, vol. 88(1), pages 86-103, March.
    • Handle: RePEc:bla:socsci:v:88:y:2007:i:1:p:86-103
    DOI: 10.1111/j.1540-6237.2007.00448.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1540-6237.2007.00448.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1540-6237.2007.00448.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Timothy J. Bartik, "undated". "What Should the Federal Government Be Doing About Urban Economic Development?," Upjohn Working Papers tjb1994c, W.E. Upjohn Institute for Employment Research.
    2. Alan H. Peters & Peter S. Fisher, 2002. "State Enterprise Zone Programs: Have They Worked?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number sezp.
    3. John E. Anderson & Robert W. Wassmer, 2000. "Bidding for Business: The Efficacy of Local Economic Development Incentives in a Metropolitan Area," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number bb.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Robert T. Greenbaum & Jim Landers, 2009. "Why Are State Policy Makers Still Proponents of Enterprise Zones? What Explains Their Action in the Face of a Preponderance of the Research?," International Regional Science Review, , vol. 32(4), pages 466-479, October.
    2. Alexandra Tsvetkova & Mark Partridge & Michael Betz, 2019. "Self-employment effects on regional growth: a bigger bang for a buck?," Small Business Economics, Springer, vol. 52(1), pages 27-45, January.
    3. Manuel P. Teodoro, 2009. "Bureaucratic Job Mobility and The Diffusion of Innovations," American Journal of Political Science, John Wiley & Sons, vol. 53(1), pages 175-189, January.
    4. Sumei Zhang, 2019. "Rethinking U.S. enterprise zones: The role of research design in program evaluation," Local Economy, London South Bank University, vol. 34(6), pages 545-571, September.
    5. Dafna Schwartz & Joseph Pelzman & Michael Keren, 2008. "The Ineffectiveness of Location Incentive Programs," Economic Development Quarterly, , vol. 22(2), pages 167-179, May.
    6. Jolley, G. Jason, 2023. "The Political Economy of Local Government Enterprise Zone Designation," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 53(2), September.
    7. Yuxuan Pan & Tessa Conroy & Alexandra Tsvetkova & Matthew Kures, 2020. "Incentives and Firm Migration: An Interstate Comparison Approach," Economic Development Quarterly, , vol. 34(2), pages 140-153, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jasper Beekmans & Huub Ploegmakers & Karel Martens & Erwin van der Krabben, 2016. "Countering decline of industrial sites: Do local economic development policies target the neediest places?," Urban Studies, Urban Studies Journal Limited, vol. 53(14), pages 3027-3047, November.
    2. Richard Funderburg & Timothy J. Bartik & Alan H. Peters & Peter S. Fisher, 2013. "The Impact Of Marginal Business Taxes On State Manufacturing," Journal of Regional Science, Wiley Blackwell, vol. 53(4), pages 557-582, October.
    3. Timothy J. Bartik, 2004. "Incentive Solutions," Upjohn Working Papers 04-99, W.E. Upjohn Institute for Employment Research.
    4. Daniele Bondonio & Robert T. Greenbaum, 2003. "A comparative evaluation of spacially targeted economic revitalization programs in the European Union and the United States," ICER Working Papers 03-2003, ICER - International Centre for Economic Research.
    5. Matias Busso & Patrick Kline, 2008. "Do Local Economic Development Programs Work? Evidence from the Federal Empowerment Zone Program," Cowles Foundation Discussion Papers 1639, Cowles Foundation for Research in Economics, Yale University.
    6. Andy Hultquist & Tricia L. Petras, 2012. "An Examination of the Local Economic Impacts of Military Base Closures," Economic Development Quarterly, , vol. 26(2), pages 151-161, May.
    7. Givord, Pauline & Quantin, Simon & Trevien, Corentin, 2018. "A long-term evaluation of the first generation of French urban enterprise zones," Journal of Urban Economics, Elsevier, vol. 105(C), pages 149-161.
    8. James H. Spencer & Paul Ong, 2004. "An Analysis of the Los Angeles Revitalization Zone: Are Place-Based Investment Strategies Effective Under Moderate Economic Conditions?," Economic Development Quarterly, , vol. 18(4), pages 368-383, November.
    9. Timothy J. Bartik, 2004. "Evaluating the Impacts of Local Economic Development Policies on Local Economic Outcomes: What Has Been Done and What Is Doable?," Book chapters authored by Upjohn Institute researchers, in: Evaluating Local Economic and Employment Development: How to Access Waht Works Among Programmes and Policies, pages 113-142, W.E. Upjohn Institute for Employment Research.
    10. Krupka, Douglas J. & Noonan, Douglas S., 2009. "Empowerment Zones, neighborhood change and owner-occupied housing," Regional Science and Urban Economics, Elsevier, vol. 39(4), pages 386-396, July.
    11. Kenyon, Daphne A. & Langley, Adam H. & Paquin, Bethany P., 2012. "Property Tax Incentive Pitfalls," National Tax Journal, National Tax Association;National Tax Journal, vol. 65(4), pages 1011-1021, December.
    12. Anna Alberini, 2007. "Determinants And Effects On Property Values Of Participation In Voluntary Cleanup Programs: The Case Of Colorado," Contemporary Economic Policy, Western Economic Association International, vol. 25(3), pages 415-432, July.
    13. Sumei Zhang, 2015. "Impacts of Enterprise Zone Policy on Industry Growth," Economic Development Quarterly, , vol. 29(4), pages 347-362, November.
    14. Alan Sage & Mike Langen & Alex van de Minne, 2023. "Where is the opportunity in opportunity zones?," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(2), pages 338-371, March.
    15. Robert W. Wassmer, 2002. "Fiscalisation of Land Use, Urban Growth Boundaries and Non-central Retail Sprawl in the Western United States," Urban Studies, Urban Studies Journal Limited, vol. 39(8), pages 1307-1327, July.
    16. Anna Alberini & Dennis Guignet, 2008. "Voluntary Cleanups and Redevelopment Potential: Lessons from Baltimore, Maryland," Working Papers 2008.87, Fondazione Eni Enrico Mattei.
    17. Timothy J. Bartik, 2007. "Solving the Problems of Economic Development Incentives," Book chapters authored by Upjohn Institute researchers, in: Ann Markusen (ed.), Reining in the Competition for Capital, chapter 5, pages 103-139, W.E. Upjohn Institute for Employment Research.
    18. Stephen Billings, 2009. "Do Enterprise Zones Work?," Public Finance Review, , vol. 37(1), pages 68-93, January.
    19. Laura Wolf-Powers, 2013. "Predictors of Employment Growth and Unemployment in U.S. Central Cities, 1990-2010," Upjohn Working Papers 13-199, W.E. Upjohn Institute for Employment Research.
    20. Timothy J. Bartik, 2003. "Local Economic Development Policies," Upjohn Working Papers 03-91, W.E. Upjohn Institute for Employment Research.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:socsci:v:88:y:2007:i:1:p:86-103. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0038-4941 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.