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Does State Economic Development Spending Increase Manufacturing Employment?

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  • de Bartolome, Charles A. M.
  • Spiegel, Mark M.

Abstract

Recent studies, which have attempted to determine what causes an industrial sector in a state to grow, have ignored the general role of the state's economic development agency. We extend the analysis to include its effect, and determine that economic development expenditure by the state is a statistically significant determinant of manufacturing growth in the state. Our result is robust to a variety of specification tests.
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  • de Bartolome, Charles A. M. & Spiegel, Mark M., 1997. "Does State Economic Development Spending Increase Manufacturing Employment?," Journal of Urban Economics, Elsevier, vol. 41(2), pages 153-175, March.
    • Handle: RePEc:eee:juecon:v:41:y:1997:i:2:p:153-175
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    1. Bartik, Timothy J, 1985. "Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes, and Other Characteristics of States," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(1), pages 14-22, January.
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    9. Timothy J. Bartik, 2000. "Jobs, Productivity, and Local Economic Development: What Implications Does Economic Research Have for the Role of Government?," Book chapters authored by Upjohn Institute researchers, in: Robert W. Wassmer (ed.),Readings in Urban Economics: Issues and Public Policy, pages 72-122, W.E. Upjohn Institute for Employment Research.
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    Cited by:

    1. Carlianne Patrick, 2014. "The economic development incentives game: an imperfect information, heterogeneous communities approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 137-156, August.
    2. Gabe, Todd, 2000. "The Effects of Business Assistance Programs on Employment Growth in Maine Establishments," MPRA Paper 65983, University Library of Munich, Germany.
    3. Lee, Yoonsoo, 2008. "Geographic redistribution of US manufacturing and the role of state development policy," Journal of Urban Economics, Elsevier, vol. 64(2), pages 436-450, September.
    4. Duffy, Neal E., 2001. "The Regional Growth of Manufacturing: Markets, Wages, and Labor Composition," The Review of Regional Studies, Southern Regional Science Association, vol. 31(3), pages 255-276, Winter.
    5. Patrick, Carlianne, 2016. "Jobless capital? The role of capital subsidies," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 169-179.
    6. Richard M. Vogel, 2000. "Relocation Subsidies: Regional Growth Policy or Corporate Welfare?," Review of Radical Political Economics, Union for Radical Political Economics, vol. 32(3), pages 437-447, September.
    7. Jia Wang & Weici Yuan & Cynthia Rogers, 2020. "Economic Development Incentives: What Can We Learn From Policy Regime Changes?," Economic Development Quarterly, , vol. 34(2), pages 116-125, May.
    8. Carlianne Patrick, 2014. "Does Increasing Available Non-Tax Economic Development Incentives Result in More Jobs?," National Tax Journal, National Tax Association;National Tax Journal, vol. 67(2), pages 351-386, June.
    9. Calcagno, Peter T. & Hefner, Frank L., 2007. "State Targeting of Business Investment: Does Targeting Increase Corporate Tax Revenue?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(2), pages 1-13.

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