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Regional Policies and Economic Growth: One Size Does Not Fit All


  • Nizalov, Denys

    (MI State U)

  • Loveridge, Scott

    (MI State U)


We analyze the impact of economic development policies and highway infrastructure improvements on growth of per capita income and jobs in Michigan counties. The policies considered for analysis have significant impact on growth outcomes. However, this effect is non-linear. Significant heterogeneity in policy effects is also detected. The impacts are different with respect to average income level in a county as well as between metropolitan and non-metropolitan areas. In addition, cross-policy effects are found. We use improved measurement of policy treatment while accounting for possible spillover effects.

Suggested Citation

  • Nizalov, Denys & Loveridge, Scott, 2005. "Regional Policies and Economic Growth: One Size Does Not Fit All," The Review of Regional Studies, Southern Regional Science Association, vol. 35(3), pages 266-290.
  • Handle: RePEc:rre:publsh:v:35:y:2005:i:3:p:266-90

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    References listed on IDEAS

    1. Ernest P. Goss & Joseph M. Phillips, 1999. "Do Business Tax Incentives Contribute to a Divergence in Economic Growth?," Economic Development Quarterly, , vol. 13(3), pages 217-228, August.
    2. Faulk, Dagney, 2002. "Do State Economic Development Incentives Create Jobs? An Analysis of State Employment Tax Credits," National Tax Journal, National Tax Association, vol. 55(2), pages 263-280, June.
    3. Besley, Timothy & Case, Anne, 2000. "Unnatural Experiments? Estimating the Incidence of Endogenous Policies," Economic Journal, Royal Economic Society, vol. 110(467), pages 672-694, November.
    4. 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.
    5. Forni, Mario & Lippi, Marco, 1997. "Aggregation and the Microfoundations of Dynamic Macroeconomics," OUP Catalogue, Oxford University Press, number 9780198288008, June.
    6. Margaret E. Dewar, 1998. "Why State and Local Economic Development Programs Cause so Little Economic Development," Economic Development Quarterly, , vol. 12(1), pages 68-87, February.
    7. Dick Thornburgh, 1998. "A Path to Smarter Federal Leadership in Economic Development: Learning, Leveraging, and Linking," Economic Development Quarterly, , vol. 12(4), pages 291-298, November.
    8. Ted K. Bradshaw, 2002. "The Contribution of Small Business Loan Guarantees to Economic Development," Economic Development Quarterly, , vol. 16(4), pages 360-369, November.
    9. Stephen J. Goetz, 1999. "Migration and Local Labor Markets," Wholbk, Regional Research Institute, West Virginia University, number 22, November.
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    Cited by:

    1. Loveridge, Scott & Nizalov, Denys, . "Increasing the Equity and Efficiency of Tax Abatement Programs," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association.
    2. Mark D. Partridge & Dan S. Rickman & Kamar Ali & M. Rose Olfert, 2008. "The Geographic Diversity of U.S. Nonmetropolitan Growth Dynamics: A Geographically Weighted Regression Approach," Land Economics, University of Wisconsin Press, vol. 84(2), pages 241-266.

    More about this item


    Infrastructure; Policy; Regional;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy


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