IDEAS home Printed from https://ideas.repec.org/a/rre/publsh/v48y2018i1p29-53.html
   My bibliography  Save this article

Do Business Subsidies Lead to Increased Economic Activity? Evidence from Arkansas's Quick Action Closing Fund

Author

Listed:
  • Jacob Bundrick

    (University of Central Arkansas)

  • Thomas Snyder

    (University of Central Arkansas)

Abstract

State governments rely heavily on targeted economic-development incentives to promote economic activity. In recent years, many states have adopted targeted subsidy programs known as “deal-closing funds†to attract and retain businesses. Despite the increased use of deal-closing funds, it remains unclear whether they provide value in terms of increasing private employment and establishments. In this paper, we analyze the relationship between deal-closing funds and county-level private employment and private establishments from Arkansas’s Quick Action Closing Fund (QACF). We estimate these relationships using a variety of fixed-effects and OLS techniques to measure both within-county and across-county relationships. We find little evidence to suggest that the QACF creates significant job and establishment growth. The results from this study should serve to better inform public policy across states as it relates to the use of targeted business subsidies.

Suggested Citation

  • Jacob Bundrick & Thomas Snyder, 2018. "Do Business Subsidies Lead to Increased Economic Activity? Evidence from Arkansas's Quick Action Closing Fund," The Review of Regional Studies, Southern Regional Science Association, vol. 48(1), pages 29-53, Spring.
    • Handle: RePEc:rre:publsh:v48:y:2018:i:1:p:29-53
    as

    Download full text from publisher

    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/1005
    File Function: To View On Journal Page
    Download Restriction: no
    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/1005/854
    File Function: To Download Article
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jacob Bundrick & Weici Yuan, 2019. "Do Targeted Business Subsidies Improve Income and Reduce Poverty? A Synthetic Control Approach," Economic Development Quarterly, , vol. 33(4), pages 351-375, November.
    2. Koirala, Samjhana & Jakus, Paul M. & Watson, Philip, 2023. "Identifying Constraints to Rural Economic Development: A Development Guidance Function Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(3), September.

    More about this item

    Keywords

    state government subsides; business subsidies; project analysis; deal closing funds; targeted economic development incentives;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rre:publsh:v48:y:2018:i:1:p:29-53. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tammy Leonard & Lei Zhang (email available below). General contact details of provider: http://www.srsa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.