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The effects of state policies on the location of industry: evidence from state borders

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  • Thomas J. Holmes

Abstract

This paper provides new evidence that state policies play a role in the location of industry. The paper classifies a state as pro-business or anti-business depending upon whether or not the state has a right-to-work law. The paper finds that, on average, there is a large abrupt increase in manufacturing activity when crossing a state border from an anti-business state into a pro-business state.

Suggested Citation

  • Thomas J. Holmes, 1996. "The effects of state policies on the location of industry: evidence from state borders," Staff Report 205, Federal Reserve Bank of Minneapolis.
  • Handle: RePEc:fip:fedmsr:205
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    File URL: http://minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=486
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    File URL: http://minneapolisfed.org/research/sr/sr205.pdf
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    References listed on IDEAS

    as
    1. Timothy J. Bartik, 2003. "Local Economic Development Policies," Upjohn Working Papers and Journal Articles 03-91, W.E. Upjohn Institute for Employment Research.
    2. Thomas J. Holmes, 1999. "Localization Of Industry And Vertical Disintegration," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 314-325, May.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Industrial location;

    Statistics

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