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The Differential Impact of Regional Policies on Economic Growth: One Size Does Not Fit All

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  • Nizalov, Denys
  • Loveridge, Scott

Abstract

We analyze the impact of Michigan economic development policies and highway infrastructure improvements on per capita income and job growth in 1990s using fixed effect estimation procedure. We also improve measurement of policy treatment while accounting for possible spillover effect. The policies considered for analysis have significant impact on growth outcomes. However this effect is non-linear. The size of this impact changes over time and the path of change varies by type of policy. Policy impacts are different between metro and non-metropolitan areas. Also, cross-policy effects are found. The results can assist decision makers in targeting policies.

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File URL: http://purl.umn.edu/19360
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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19360.

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Date of creation: 2005
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Handle: RePEc:ags:aaea05:19360

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Keywords: Public Economics;

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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.
  2. Peter S. Fisher, 1997. "Tax and spending incentives and enterprise zones," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 109-138.
  3. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, December.
  4. Forni, Mario & Lippi, Marco, 1997. "Aggregation and the Microfoundations of Dynamic Macroeconomics," OUP Catalogue, Oxford University Press, number 9780198288008.
  5. Timothy J. Bartik, 2003. "Local Economic Development Policies," Upjohn Working Papers and Journal Articles 03-91, W.E. Upjohn Institute for Employment Research.
  6. Faulk, Dagney, 2002. "Do State Economic Development Incentives Create Jobs? An Analysis of State Employment Tax Credits," National Tax Journal, National Tax Association, vol. 55(N. 2), pages 263-280, June.
  7. Christopher De Sousa, 2000. "Brownfield Redevelopment versus Greenfield Development: A Private Sector Perspective on the Costs and Risks Associated with Brownfield Redevelopment in the Greater Toronto Area," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 43(6), pages 831-853.
  8. Ronald C. Fisher, 1997. "Effects of state and local public services on economic development," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 53-82.
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