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Rural Enterprise Zones in Theory and Practice: An Assessment of Their Development Potential

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  • Reeder, Richard J.

Abstract

State enterprise zone programs use tax incentives and other forms of assistance to encourage business development in distressed areas. Research suggests that enterprise zones have been fairly successful in generating jobs, and the cost per job created appears reasonable when compared with other job creation programs. Although enterprise zones may not be appropriate for all rural areas, most rural zones appear to be doing as well as or better than urban zones in creating jobs. Zone performance might be improved by screening out potentially unproductive zones, by providing more hands-on technical assistance, and by modifying program incentives.

Suggested Citation

  • Reeder, Richard J., 1993. "Rural Enterprise Zones in Theory and Practice: An Assessment of Their Development Potential," Staff Reports 278690, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:278690
    DOI: 10.22004/ag.econ.278690
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    File URL: https://ageconsearch.umn.edu/record/278690/files/ers-report-587.pdf
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    References listed on IDEAS

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    1. Newman, Robert J. & Sullivan, Dennis H., 1988. "Econometric analysis of business tax impacts on industrial location: What do we know, and how do we know it?," Journal of Urban Economics, Elsevier, vol. 23(2), pages 215-234, March.
    2. Redman, John, 1992. "Federal Job Training for the Poor May Be More Cost Effective in Rural Areas," Rural America/ Rural Development Perspectives, United States Department of Agriculture, Economic Research Service, vol. 8(1), February.
    3. Michael Allan Wolf, 1990. "Enterprise Zones: A Decade of Diversity," Economic Development Quarterly, , vol. 4(1), pages 3-14, February.
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    Cited by:

    1. Andrew M. Isserman, 1993. "State Economic Development Policy and Practice in the United States: A Survey Article," International Regional Science Review, , vol. 16(1-2), pages 49-100, April.
    2. Rural Economy Division, 1995. "Business Assistance and Rural Development," Staff Reports 278872, United States Department of Agriculture, Economic Research Service.
    3. Rural Economy Division, 1995. "Business Assistance and Rural Development," Staff Reports 278789, United States Department of Agriculture, Economic Research Service.

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