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Benefits and Costs of Regional Development: Evidence from Ohio's Enterprise Zone Program

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  • Seetharam Sridhar, Kala

Abstract

Enterprise zones are a tool of regional development policy, relying on tax incentives. The objective of the paper is to answer the questions : Are enterprise zones efficient? Are they efficient if adopted by high-unemployment areas? The research applies the questions to Ohio’s enterprise zone program because of the policy debate it has generated. The net benefits from employment created in the program are compared to program costs making different assumptions about employment. I find that the net benefits of regional development can be expected to be greater than their costs. However, because of their efficiency implications, I find that it could be beneficial for high unemployment areas to adopt tax incentive policies.

Suggested Citation

  • Seetharam Sridhar, Kala, 2001. "Benefits and Costs of Regional Development: Evidence from Ohio's Enterprise Zone Program," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 31(2), pages 1-32.
    • Handle: RePEc:ags:jrapmc:132197
    DOI: 10.22004/ag.econ.132197
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    1. John F. McDonald, 1997. "Comment on Kala Seetharam Sridhar's (1996) "Tax Costs and Employment Benefits of Enterprise Zones"," Economic Development Quarterly, , vol. 11(3), pages 222-224, August.
    2. 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, August.
    3. Dan Y. Dabney, 1991. "Do Enterprise Zone Incentives Affect Business Location Decisions?," Economic Development Quarterly, , vol. 5(4), pages 325-334, November.
    4. Papke, Leslie E., 1994. "Tax policy and urban development : Evidence from the Indiana enterprise zone program," Journal of Public Economics, Elsevier, vol. 54(1), pages 37-49, May.
    5. Boarnet, Marlon G. & Bogart, William T., 1996. "Enterprise Zones and Employment: Evidence from New Jersey," Journal of Urban Economics, Elsevier, vol. 40(2), pages 198-215, September.
    6. Kala Seetharam Sridhar, 1996. "Tax Costs and Employment Benefits of Enterprise Zones," Economic Development Quarterly, , vol. 10(1), pages 69-90, February.
    7. David E. Dowall, 1996. "An Evaluation of California's Enterprise Zone Programs," Economic Development Quarterly, , vol. 10(4), pages 352-368, November.
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    1. repec:ind:nipfwp:19 is not listed on IDEAS
    2. Sumei Zhang, 2020. "Do Research Methods Matter in Enterprise Zone Outcome Evaluations?," Economic Development Quarterly, , vol. 34(3), pages 299-309, August.
    3. Sridhar, Kala Seetharam, 2004. "Impact of the enterprise zone," Working Papers 04/19, National Institute of Public Finance and Policy.
    4. Sumei Zhang, 2019. "Rethinking U.S. enterprise zones: The role of research design in program evaluation," Local Economy, London South Bank University, vol. 34(6), pages 545-571, September.
    5. Jasper Beekmans & Huub Ploegmakers & Karel Martens & Erwin van der Krabben, 2016. "Countering decline of industrial sites: Do local economic development policies target the neediest places?," Urban Studies, Urban Studies Journal Limited, vol. 53(14), pages 3027-3047, November.
    6. repec:npf:wpaper:19 is not listed on IDEAS
    7. Daniele Bondonio & Robert T. Greenbaum, 2003. "A comparative evaluation of spacially targeted economic revitalization programs in the European Union and the United States," ICER Working Papers 03-2003, ICER - International Centre for Economic Research.

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