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Geographic Redistribution of the U.S. Manufacturing and The Role of State Development Policy

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Author Info
Yoonsoo Lee

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Abstract

Competition among state and local governments to lure businesses has attracted considerable interest from economists, as well as legislators and policy makers. This paper quantifies the role of plant relocations in the geographic redistribution of manufacturing employment and examines the effectiveness of state development policy. Only a few studies have looked at how manufacturing firms locate their production facilities geographically; they have used either small manufacturing samples or small geographic regions. This paper provides broader evidence of the impact of plant relocations using confidential establishment level data from the U.S. Census Longitudinal Research Database (LRD), covering the full population of manufacturing establishments in the United States over the period from 1972 to 1992. This paper finds a relatively small role for relocation in explaining the disparity of manufacturing employment growth rates across states. Moreover, it finds evidence of very weak effects of incentive programs on plant relocations.

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File URL: http://webserver01.ces.census.gov/index.php/ces/1.00/cespapers?down_key=101779
File Format: application/pdf
File Function: First version, 2007
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Publisher Info
Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 07-06.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 41 pages
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:cen:wpaper:07-06

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Web page: http://www.ces.census.gov

For technical questions regarding this item, or to correct its listing, contact: (Sang V. Nguyen).

Related research
Keywords: entry exit relocation tax incentive

Find related papers by JEL classification:
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
R58 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Regional Development Policy

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This page was last updated on 2008-8-19.

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