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The effects of state policies on the location of industry: evidence from state borders

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  • Thomas J. Holmes

Abstract

This paper provides new evidence that state policies play a role in the location of industry. The paper classifies a state as pro-business or anti-business depending upon whether or not the state has a right-to-work law. The paper finds that, on average, there is a large abrupt increase in manufacturing activity when crossing a state border from an anti-business state into a pro-business state.

Suggested Citation

  • Thomas J. Holmes, 1996. "The effects of state policies on the location of industry: evidence from state borders," Staff Report 205, Federal Reserve Bank of Minneapolis.
    • Handle: RePEc:fip:fedmsr:205
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    References listed on IDEAS

    as
    1. Timothy J. Bartik, 2003. "Local Economic Development Policies," Upjohn Working Papers 03-91, W.E. Upjohn Institute for Employment Research.
    2. Newman, Robert J, 1983. "Industry Migration and Growth in the South," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 76-86, February.
    3. William J. Moore & Robert J. Newman, 1985. "The Effects of Right-to-Work Laws: A Review of the Literature," ILR Review, Cornell University, ILR School, vol. 38(4), pages 571-585, July.
    4. Thomas J. Holmes, 1999. "Localization Of Industry And Vertical Disintegration," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 314-325, May.
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    Cited by:

    1. Stephen J. Redding, 2010. "The Empirics Of New Economic Geography," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 297-311, February.
    2. Glaeser, Edward L., 2008. "The Economic Approach to Cities," Working Paper Series rwp08-003, Harvard University, John F. Kennedy School of Government.
    3. Stephen J. Redding, 2013. "Economic Geography: A Review of the Theoretical and Empirical Literature," Palgrave Macmillan Books, in: Daniel Bernhofen & Rod Falvey & David Greenaway & Udo Kreickemeier (ed.), Palgrave Handbook of International Trade, chapter 16, pages 497-531, Palgrave Macmillan.
    4. Guy Dumais & Glenn Ellison & Edward L. Glaeser, 2002. "Geographic Concentration As A Dynamic Process," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 193-204, May.
    5. Ozkan Eren & I. Serkan Ozbeklik, 2011. "Right-to-Work Laws and State-Level Economic Outcomes: Evidence from the Case Studies of Idaho and Oklahoma Using Synthetic Control Method," Working Papers 1101 Classification-JEL J, University of Nevada, Las Vegas , Department of Economics.
    6. Devesh Raval, 2011. "Beyond Cobb-Douglas: Estimation of a CES Production Function with Factor Augmenting Technology," Working Papers 11-05, Center for Economic Studies, U.S. Census Bureau.
    7. Satyajit Chatterjee, 2003. "Agglomeration economies: the spark that ignites a city?," Business Review, Federal Reserve Bank of Philadelphia, issue Q4, pages 6-13.
    8. William H. Oakland & William A. Testa, 1998. "Can the benefits principle be applied to state-local taxation of business?," Working Paper Series WP-98-16, Federal Reserve Bank of Chicago.

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    Keywords

    Industrial location;

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