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Using Program Attributes to Measure and Evaluate State Economic Development Strategies

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  • Martin Saiz

    (California State University, Northridge)

Abstract

In this article, the author analyzes the substance of state-level economic development programs and distills their essential attributes to create measures that distinguish locational from entrepreneurial economic development strategies. After assessing the validity and reliability of the measures, the author assesses whether these strategies are associated with economic growth. Findings indicate that entrepreneurial economic development strategies increase manufacturing employment but have no effect on changes in total state product or aggregate employment. Industrial recruitment strategies are found to have a negative effect on employment growth in the finance, insurance, and real estate sectors. No positive “spinoff†effects to secondary or tertiary economic sectors are associated with either strategy.

Suggested Citation

  • Martin Saiz, 2001. "Using Program Attributes to Measure and Evaluate State Economic Development Strategies," Economic Development Quarterly, , vol. 15(1), pages 45-57, February.
    • Handle: RePEc:sae:ecdequ:v:15:y:2001:i:1:p:45-57
    DOI: 10.1177/089124240101500104
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    References listed on IDEAS

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    1. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, December.
    2. Peter S. Fisher & Alan H. Peters, 1998. "Industrial Incentives: Competition among American Cities and States," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ii, December.
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    Cited by:

    1. 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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