IDEAS home Printed from https://ideas.repec.org/a/sae/ecdequ/v31y2017i1p50-64.html
   My bibliography  Save this article

Captured Development

Author

Listed:
  • Joshua M. Jansa
  • Virginia Gray

Abstract

Scholars focus on interstate competition and intrastate economic conditions as the primary determinants of state economic development policies, including direct subsidies. New data from the Good Jobs First Subsidy Tracker illustrates large differences in subsidy spending across the states and that established firms are the disproportionate beneficiaries. In light of this new evidence, we argue that the political presence of the business sector within the state is an important determinant of state subsidy spending. A large political presence helps forward industry interests before government and has the potential to capture state governments. We find support for the cultural capture model by demonstrating that a greater number of lobbyists and campaign contributions from businesses leads to more subsidy spending, all else equal. We conclude that subsidies, and which companies receive them, are a product of both politics and economics.

Suggested Citation

  • Joshua M. Jansa & Virginia Gray, 2017. "Captured Development," Economic Development Quarterly, , vol. 31(1), pages 50-64, February.
    • Handle: RePEc:sae:ecdequ:v:31:y:2017:i:1:p:50-64
    DOI: 10.1177/0891242416682300
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0891242416682300
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0891242416682300?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. Terry F. Buss, 2001. "The Effect of State Tax Incentives on Economic Growth and Firm Location Decisions: An Overview of the Literature," Economic Development Quarterly, , vol. 15(1), pages 90-105, February.
    2. Barry T. Hirsch & David A. MacPherson, 2003. "Union Membership and Coverage Database from the Current Population Survey: Note," ILR Review, Cornell University, ILR School, vol. 56(2), pages 349-354, January.
    3. Hall, Richard L. & Wayman, Frank W., 1990. "Buying Time: Moneyed Interests and the Mobilization of Bias in Congressional Committees," American Political Science Review, Cambridge University Press, vol. 84(3), pages 797-820, September.
    4. Gordon, Sanford C. & Hafer, Catherine, 2005. "Flexing Muscle: Corporate Political Expenditures as Signals to the Bureaucracy," American Political Science Review, Cambridge University Press, vol. 99(2), pages 245-261, May.
    5. Berry, Frances Stokes & Berry, William D., 1990. "State Lottery Adoptions as Policy Innovations: An Event History Analysis," American Political Science Review, Cambridge University Press, vol. 84(2), pages 395-415, June.
    Full references (including those not matched with items on IDEAS)

    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. Wolton, Stephane, 2016. "Lobbying, Inside and Out: How Special Interest Groups Influence Policy Choices," MPRA Paper 68637, University Library of Munich, Germany.
    2. Sojin Jang & Hongtao Yi, 2022. "Organized elite power and clean energy: A study of negative policy experimentations with renewable portfolio standards," Review of Policy Research, Policy Studies Organization, vol. 39(1), pages 8-31, January.
    3. Gregory M. Randolph & Michael T. Tasto, 2012. "Special Interest Group Formation in the United States: Do Special Interest Groups Mirror the Success of their Spatial Neighbors?," Economics and Politics, Wiley Blackwell, vol. 24(2), pages 119-134, July.
    4. Michael J. Barber & Brandice Canes‐Wrone & Sharece Thrower, 2017. "Ideologically Sophisticated Donors: Which Candidates Do Individual Contributors Finance?," American Journal of Political Science, John Wiley & Sons, vol. 61(2), pages 271-288, April.
    5. Thomas Stratmann, 2005. "Some talk: Money in politics. A (partial) review of the literature," Public Choice, Springer, vol. 124(1), pages 135-156, July.
    6. Mehrotra, Neil & Turner, Matthew A. & Uribe, Juan Pablo, 2024. "Does the US have an infrastructure cost problem? Evidence from the interstate highway system," Journal of Urban Economics, Elsevier, vol. 143(C).
    7. Abdul‐Rahman Khokhar & Hesam Shahriari, 2022. "Is the SEC captured? Evidence from political connectedness and SEC enforcement actions," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(2), pages 2725-2756, June.
    8. Amy Y. Li, 2017. "Covet Thy Neighbor or “Reverse Policy Diffusion”? State Adoption of Performance Funding 2.0," Research in Higher Education, Springer;Association for Institutional Research, vol. 58(7), pages 746-771, November.
    9. Behroz Baraghoshi & Cihan Bilginsoy, 2013. "Interstate Variations in Private Sector Union Density in the U.S," Journal of Labor Research, Springer, vol. 34(2), pages 180-202, June.
    10. Lars P. Feld & Horst Zimmermann & Thomas Döring, 2003. "Föderalismus, Dezentralität und Wirtschaftswachstum," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(3), pages 361-377.
    11. Andreas G. F. Hoepner & Lisa Schopohl, 2020. "State Pension Funds and Corporate Social Responsibility: Do Beneficiaries’ Political Values Influence Funds’ Investment Decisions?," Journal of Business Ethics, Springer, vol. 165(3), pages 489-516, September.
    12. Laurent Bouton & Julia Cagé & Edgard Dewitte & Vincent Pons, 2021. "Small Campaign Donors," Working Papers hal-03878175, HAL.
    13. Suzanne G. Tilleman & Michael V. Russo & Andrew J. Nelson, 2020. "Institutional Logics and Technology Development: Evidence from the Wind and Solar Energy Industries," Organization Science, INFORMS, vol. 31(3), pages 649-670, May.
    14. Grelak, Eric & Koford, Kenneth, 1997. "A re-examination of the Fiorina-Plott and Eavey voting experiments: How much do cardinal payoffs influence outcomes?," Journal of Economic Behavior & Organization, Elsevier, vol. 32(4), pages 571-589, April.
    15. Michael J. Hicks, 2005. "Does Wal-Mart Cause an Increase in Anti-Poverty Program Expenditures?," Public Economics 0511015, University Library of Munich, Germany.
    16. Michel Freyssenet & Bruno Jetin, 2019. "The deregulation of employment and finance: the Big Three in crisis," Working Papers halshs-02020051, HAL.
    17. Fonseca, Camila & Jiang, Haiyue & Zeerak, Raihana & Zhao, Jerry Zhirong, 2024. "Explaining the adoption of electric vehicle fees across the United States," Transport Policy, Elsevier, vol. 149(C), pages 139-149.
    18. William D. Berry & Jacqueline H. R. DeMeritt & Justin Esarey, 2010. "Testing for Interaction in Binary Logit and Probit Models: Is a Product Term Essential?," American Journal of Political Science, John Wiley & Sons, vol. 54(1), pages 248-266, January.
    19. Brian Kelleher Richter & Krislert Samphantharak & Jeffrey F. Timmons, 2009. "Lobbying and Taxes," American Journal of Political Science, John Wiley & Sons, vol. 53(4), pages 893-909, October.
    20. Cotton, Christopher, 2015. "Competing for Attention," MPRA Paper 65715, University Library of Munich, Germany.

    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:sae:ecdequ:v:31:y:2017:i:1:p:50-64. 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: SAGE Publications (email available below). General contact details of provider: .

    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.