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The impact of state enterprise zones on urban manufacturing establishments

  • Robert T. Greenbaum

    (School of Public Policy and Management, The Ohio State University)

  • John B. Engberg

    (RAND, Pittsburgh)

Registered author(s):

    Since the early 1980s, the vast majority of states have implemented enterprise zones. This paper analyzes urban zones in six states, examining the factors that states use to choose zone locations and the subsequent effect of the zones on business activity and employment. The source of outcome data is the U.S. Bureau of Census' longitudinal research database (LRD), which tracks manufacturing establishments over time. Matched sample and geographic comparison groups are created to measure the impact of zone policy on employment, establishment, shipment, payroll, and capital spending outcomes. Consistent with previous findings, the difference-in-difference estimates indicate that zones have little effect, on average. However, by exploiting the establishment-level data to examine gross as well as net changes, the analysis finds that zones have a positive effect on the outcomes of new establishments and a negative effect on the outcomes of previously existing establishments. © 2004 by the Association for Public Policy Analysis and Management.

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    File URL: http://hdl.handle.net/10.1002/pam.20006
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    Article provided by John Wiley & Sons, Ltd. in its journal Journal of Policy Analysis and Management.

    Volume (Year): 23 (2004)
    Issue (Month): 2 ()
    Pages: 315-339

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    Handle: RePEc:wly:jpamgt:v:23:y:2004:i:2:p:315-339
    Contact details of provider: Web page: http://www3.interscience.wiley.com/journal/34787/home

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    1. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, March.
    2. Dunne, T. & Roberts, M.J. & Samuelson, L., 1988. "Pattenrs Of Firm Entry And Exit In U.S. Manufacturing Industries," Papers 1-88-2, Pennsylvania State - Department of Economics.
    3. Richard Voith, 1996. "The suburban housing market: the effects of city and suburban job growth," Business Review, Federal Reserve Bank of Philadelphia, issue Nov, pages 13-25.
    4. Leslie E. Papke, 1993. "What Do We Know about Enterprise Zones?," NBER Chapters, in: Tax Policy and the Economy, Volume 7, pages 37-72 National Bureau of Economic Research, Inc.
    5. Boarnet, Marlon G. & Bogart, William T., 1996. "Enterprise Zones and Employment: Evidence from New Jersey," Journal of Urban Economics, Elsevier, vol. 40(2), pages 198-215, September.
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