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High-Tech Employment And State Economic Development Policies

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  • Mark Partridge

    (Georgia Southern University)

Abstract

States have attempted to attract industries by offering a variety of tax incentives and economic development programs with mixed success. States have recently begun to focus on high-tech industries, where average wages are significantly above the all industry average. This study analyzes whether a state's tax and expenditure mix can influence high-tech industry location. Empirically, this study advances previous high-tech research by carefully modelling the government budget constraint and by considering more recent data. One emphasis will be whether rural states are inherently unable to attract high-tech industry and its high-paying jobs. In general, the empirical results suggest that a state's fiscal policies can attract high-tech fums, but states must proceed very cautiously. Furthermore, rural states are not dealt out of the high-tech game.

Suggested Citation

  • Mark Partridge, 1993. "High-Tech Employment And State Economic Development Policies," The Review of Regional Studies, Southern Regional Science Association, vol. 23(3), pages 287-305, Winter.
  • Handle: RePEc:rre:publsh:v23:y:1993:i:3:p:287-305
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    References listed on IDEAS

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    1. Helms, L Jay, 1985. "The Effect of State and Local Taxes on Economic Growth: A Time Series-Cross Section Approach," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 574-582, November.
    2. Mofidi, Alaeddin & Stone, Joe A, 1990. "Do State and Local Taxes Affect Economic Growth?," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 686-691, November.
    3. Newman, Robert J. & Sullivan, Dennis H., 1988. "Econometric analysis of business tax impacts on industrial location: What do we know, and how do we know it?," Journal of Urban Economics, Elsevier, vol. 23(2), pages 215-234, March.
    4. MacKinnon, James G, 1992. "Model Specification Tests and Artificial Regressions," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 102-146, March.
    5. Treyz, George I., 1991. "Causes of changes in wage variation among states," Journal of Urban Economics, Elsevier, vol. 29(1), pages 50-62, January.
    6. Daniel K. Lee, 1992. "A Survey Of Target Industries," The Review of Regional Studies, Southern Regional Science Association, vol. 22(1), pages 43-57, Summer.
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    Cited by:

    1. Timothy J. Bartik, "undated". "Discussion [of the Effects of State and Local Public Services on Economic Development by Ronald C. Fisher]," Upjohn Working Papers and Journal Articles tjb1997, W.E. Upjohn Institute for Employment Research.
    2. Belal Fallah & Mark D. Partridge & Dan S. Rickman, 2014. "Geography and High-Tech Employment Growth in US Counties," Journal of Economic Geography, Oxford University Press, vol. 14(4), pages 683-720.
    3. Dorfman, Jeffrey H. & Patridge, Mark D. & Galloway, Hamilton, 2008. "Are High-Tech Employment and Natural Amenities Linked?: Answers from a Smoothed Bayesian Spatial Model," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6459, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Julie L. Hotchkiss & M. Melinda Pitts & John C. Robertson, 2008. "The Push-Pull Effects of the Information Technology Boom and Bust," Economic Development Quarterly, , vol. 22(3), pages 200-212, August.
    5. Dan Rickman & Belal Fallah & Mark Partridge, 2011. "Geographic Determinants of Hi-Tech Employment Growth in U.S. Counties," ERSA conference papers ersa11p518, European Regional Science Association.
    6. Goetz, Stephan J., 1998. "Location Decisions Of Energy-Intensive Manufacturing Firms: Estimating The Potential Impact Of Electric Utilities Deregulation," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20951, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Julie L. Hotchkiss & M. Melinda Pitts & John C. Robertson, 2006. "The push-pull effects of the information technology boom and bust: insight from matched employer-employee data," FRB Atlanta Working Paper 2006-01, Federal Reserve Bank of Atlanta.
    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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