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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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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 41 (1997)
Issue (Month): 2 (March)
Pages: 153-175

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Handle: RePEc:eee:juecon:v:41:y:1997:i:2:p:153-175

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Web page: http://www.elsevier.com/locate/inca/622905

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  1. Coughlin, Cletus C & Terza, Joseph V & Arromdee, Vachira, 1991. "State Characteristics and the Location of Foreign Direct Investment within the United States," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 73(4), pages 675-83, November.
  2. Mofidi, Alaeddin & Stone, Joe A, 1990. "Do State and Local Taxes Affect Economic Growth?," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 72(4), pages 686-91, November.
  3. Timothy J. Bartik, . "Jobs, Productivity, and Local Economic Development: What Implications Does Economic Research Have for the Role of Government?," Upjohn Working Papers and Journal Articles, W.E. Upjohn Institute for Employment Research tjb1994ntj, W.E. Upjohn Institute for Employment Research.
  4. Crihfield, John B., 1990. "Manufacturing supply : A long-run, metropolitan view," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 20(3), pages 327-349, November.
  5. Leamer, Edward E & Leonard, Herman B, 1983. "Reporting the Fragility of Regression Estimates," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 65(2), pages 306-17, May.
  6. hUallachain, Breandan O & Satterthwaite, Mark A., 1992. "Sectoral growth patterns at the metropolitan level: An evaluation of economic development incentives," Journal of Urban Economics, Elsevier, Elsevier, vol. 31(1), pages 25-58, January.
  7. 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, American Statistical Association, vol. 3(1), pages 14-22, January.
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Cited by:
  1. Yoonsoo Lee, 2004. "Geographic redistribution of U.S. manufacturing and the role of state development policy," Working Paper, Federal Reserve Bank of Cleveland 0415, Federal Reserve Bank of Cleveland.
  2. 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, Mid-Continent Regional Science Association, vol. 37(2).

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