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Who Benefits from Business Assistance Programs? Results of the ERS Rural Manufacturing Survey

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  • Greenberg, Elizabeth
  • Reeder, Richard J.

Abstract

Over 60 percent of rural manufacturing establishments benefited from government business assistance programs (State and local tax breaks, training and technical assistance, loans, and industrial parks/enterprise zones), and 28 percent found these programs to be very important to their operations over the last 3 years. Manufacturers using advanced technologies benefited more than other manufacturers. However, some regional differences in program benefits suggest these programs may add to interregional economic disparities. Large businesses were more likely to benefit than small businesses, though small businesses appeared to face more problems and benefited more when they received assistance. Programs also were only slightly more likely to benefit manufacturers in distressed nonmetro areas than in nonmetro areas generally.

Suggested Citation

  • Greenberg, Elizabeth & Reeder, Richard J., 1998. "Who Benefits from Business Assistance Programs? Results of the ERS Rural Manufacturing Survey," Agricultural Information Bulletins 33727, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersab:33727
    DOI: 10.22004/ag.econ.33727
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    File URL: https://ageconsearch.umn.edu/record/33727/files/ai987364.pdf
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    References listed on IDEAS

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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, November.
    2. McGranahan, David A., 1998. "Local Problems Facing Manufacturers: Results of the ERS Rural Manufacturing Survey," Agricultural Information Bulletins 33765, United States Department of Agriculture, Economic Research Service.
    3. Teixeira, Ruy, 1998. "Rural and Urban Manufacturing Workers: Similar Problems, Similar Challenges: Results of the ERS Rural Manufacturing Survey," Agricultural Information Bulletins 33621, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Gabe, Todd, 2000. "The Effects of Business Assistance Programs on Employment Growth in Maine Establishments," MPRA Paper 65983, University Library of Munich, Germany.
    2. Mark Skidmore & Chad Cotti & James Alm, 2013. "The Political Economy of State Government Subsidy Adoption: The Case of Ethanol," Economics and Politics, Wiley Blackwell, vol. 25(2), pages 162-180, July.
    3. Maria Figueroa-Armijos & Thomas G. Johnson, 2016. "Entrepreneurship policy and economic growth: Solution or delusion? Evidence from a state initiative," Small Business Economics, Springer, vol. 47(4), pages 1033-1047, December.
    4. Sarah Lyon-Hill & Margaret Cowell & Scott Tate & Albert Alwang, 2019. "Barriers and Drivers to Accessing and Using Workforce and Technical Assistance Resources for Small and Medium Manufacturers (SMMs) in Rural Regions," Economic Development Quarterly, , vol. 33(1), pages 51-60, February.
    5. Michael J. Hicks & Michael LaFaive, 2011. "The Influence of Targeted Economic Development Tax Incentives on County Economic Growth: Evidence From Michigan’s MEGA Credits," Economic Development Quarterly, , vol. 25(2), pages 193-205, May.
    6. Adelaja, Adesoji O. & Hailu, Yohannes G. & Abdulla, Majd, 2009. "New Economy Growth Decomposition in the U.S," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49579, Agricultural and Applied Economics Association.

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    Keywords

    Community/Rural/Urban Development;

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