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Assessment of Economic Impact Studies: The Cases of BMW and Mercedes-Benz

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  • Connaughton, John E.

    (University of North Carolina at Charlotte)

  • Madsen, Ronald A.

    (University of North Carolina at Charlotte)

Abstract

In 1992, the state of South Carolina offered an incentive package in excess of $120 million for the possible location of a BMW auto assembly plant. As part of the location effort, the state of South Carolina sponsored an impact study that appeared to be very optimistic. This paper evaluates this very optimistic impact study. The results presented in this paper fail to support the assumption made in the South Carolina impact study that 21 net new supplier chain firms would accompany a new BMW plant opening. Our findings suggest that the impact studies overestimated the total impact on the state economy.

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  • Connaughton, John E. & Madsen, Ronald A., 2001. "Assessment of Economic Impact Studies: The Cases of BMW and Mercedes-Benz," The Review of Regional Studies, Southern Regional Science Association, vol. 31(3), pages 293-303, Winter.
    • Handle: RePEc:rre:publsh:v:31:y:2001:i:3:p:293-303
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    References listed on IDEAS

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    1. Mark A. Jenn & Farrokh Nourzad, 1996. "Determinants Of Economic Development Incentives Offered By States: A Test Of The Arms Race Hypothesis," The Review of Regional Studies, Southern Regional Science Association, vol. 26(1), pages 1-16, Summer.
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    Cited by:

    1. Domański Bolesław & Gwosdz Krzysztof, 2010. "Multiplier Effects in Local and Regional Development," Quaestiones Geographicae, Sciendo, vol. 29(2), pages 27-37, June.
    2. Adams, Brian, 2016. "The employment impact of motor vehicle assembly plant openings," Regional Science and Urban Economics, Elsevier, vol. 58(C), pages 57-70.
    3. Gabe, Todd & McConnon, James C., 2018. "Popping the Question: The In uence of Survey Design on Estimated Visitor Spending in a Region," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 48(4), August.

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