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High-Tech Employment And State Economic Development Policies

  • Mark Partridge

    (Georgia Southern University)

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.

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Article provided by Southern Regional Science Association in its journal The Review of Regional Studies.

Volume (Year): 23 (1993)
Issue (Month): 3 (Winter)
Pages: 287-305

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Handle: RePEc:rre:publsh:v23:y:1993:i:3:p:287-305
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  1. 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 686-91, November.
  2. 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.
  3. MacKinnon, James G, 1992. "Model Specification Tests and Artificial Regressions," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 102-46, March.
  4. Treyz, George I., 1991. "Causes of changes in wage variation among states," Journal of Urban Economics, Elsevier, vol. 29(1), pages 50-62, January.
  5. 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 574-82, November.
  6. 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.
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