Use of business incentives is one of the most common local economic development strategies. The authors analyze national surveys of 700 to 1,000 local governments from 1994, 1999, and 2004 to track use of business incentives over time. They find a shift from primary reliance on business incentives to use of a broader set of strategies that includes business retention and small business support. The authors also find evidence of policy learning with increased attention to accountability among governments that use business incentives. The 2004 model results also suggest that governments that rely most heavily on incentives may face more intergovernmental competition, stagnating or declining economies, and lower tax bases. For such governments, business incentives may contribute to a cycle of destructive competition.
Bartik, T.J. ( 1991). Who benefits from state and local economic development policies?Kalamazoo, MI: W. E. Upjohn Institute for Employment Research.
2.
Bartik, T.J. ( 1992). The effects of state and local taxes on economic development: A review of recent research. Economic Development Quarterly , 6, 102-111.
3.
Bartik, T.J. ( 1994). Jobs, productivity, and local economic development: What implications does economic research have for the role of government?National Tax Journal, 47, 847-861.
4.
Bartik, T.J. ( 2003). Local economic development policies. Kalamazoo, MI: W. E. Upjohn Institute for Employment Research.
5.
Bartik, T.J. ( 2005). Solving the problems of economic development incentives . Growth and Change, 36, 139-166.
6.
Bennett, M., & Giloth, R.P. ( 2008). Economic development in American cities: The pursuit of an equity agenda. Albany, NY: SUNY Press.
7.
Berkowitz, B.L. ( 1988). The politics of local economic development: A review of selected recent literature from the perspective of the practitioner. Economic Development Quarterly, 2, 351-356.
8.
Blakely, E.J., & Bradshaw, T.K. (2002), Planning local economic development: Theory and practice (3rd ed.). Thousand Oaks, CA: SAGE.
9.
Bowman, A. ( 1988). Competition for economic development among southeastern cities. Urban Affairs Quarterly, 23, 511-527.
10.
Bradshaw, T.K., & Blakely, E.J. ( 1999). What are "third-wave" state economic development efforts? From incentives to industrial policy. Economic Development Quarterly, 13, 229-244.
11.
Burnier, D. ( 1992). Becoming competitive: How policymakers view incentive-based development policy. Economic Development Quarterly, 6, 14-24.
12.
Burnier, D. ( 1998). Economic development and the politics of place, empowerment, and social justice: A review essay. Economic Development Quarterly , 12, 385-391.
13.
Buss, T.F. ( 2001). The effect of state tax incentives on economic growth and firm location decisions: An overview of the literature. Economic Development Quarterly, 15, 90-105.
14.
Cable, B., Feiock, R., & Kim, J. ( 1993). The consequences of institutionalized access for economic development policy making in the U.S. Economic Development Quarterly, 7, 91-97.
15.
Christopherson, S., & Clark, J. ( 2007). Remaking regional economies: Labor, power, and firm strategies . New York, NY: Routledge.
16.
Clarke, S.E., & Gaile, G.L. ( 1992). The next wave: Postfederal local economic development strategies. Economic Development Quarterly, 6, 187-198.
17.
Clavel, P., Pitt, J., & Yin, J. ( 1997). The community option in urban policy. Urban Affairs Review, 32, 435-458.
18.
Donahue, J.D. ( 1997). Disunited states. New York, NY: Basic Books.
19.
Eisinger, P. ( 1988). The rise of the entrepreneurial state: State and local economic development policy in the United States; Entrepreneurial state. Madison: University of Wisconsin Press.
20.
Eisinger, P. ( 1995). State economic development in the 1990s: Politics and policy learning. Economic Development Quarterly, 9, 146-158.
21.
Erdman, D., Jackson, L., & Sinko, A. ( 2008). Zero-inflated Poisson and zero-inflated negative binomial models using the COUNTREG procedure. Cary, NC: SAS Institute. Retrieved July 20, 2009, from http://www.2.sas.com/proceedings/forum2008/322-2008.pdf
22.
Fisher, P.S., & Peters, A.H. ( 1998). Industrial incentives: Competition among American states and cities. Kalamazoo, MI: W. E. Upjohn Institute for Employment Research.
23.
Florida, R.L. ( 2002). The rise of the creative class: And how it’s transforming work, leisure, community and everyday life. New York, NY : Basic Books.
24.
Fosler, R.S. ( 1992). State economic policy: The emerging paradigm. Economic Development Quarterly, 6, 3-13.
25.
Giloth, R.P. ( 1992). Stalking local economic development benefits: A review of evaluation issues. Economic Development Quarterly, 6, 80-90.
26.
Goss, E.P., & Phillips, J.M. (1999). Do business tax incentives contribute to a divergence in economic growth? Economic Development Quarterly, 13, 217-228.
Hartzheim, L.A. ( 1997). State tax incentives. Journal of State Taxation, 15, 51-64.
29.
Kay, D.L., Pratt, J.E., & Warner, M.E. ( 2007). Role of services in regional economy growth. Growth and Change, 38, 419-442.
30.
Koven, S.G., & Lyons, T.S. ( 2006). Economic development: Strategies for state and local practice. Washington, DC: International City/County Management Association.
31.
Lenzi, R.C. ( 1991). Business retention and expansion Programs: A panoramic view. Economic Development Review, 9, 7-12.
32.
LeRoy, G. ( 2005). The great American jobs scam: Corporate tax dodging and the myth of job creation. San Francisco, CA: Berrett-Koehler.
33.
Logan, V.R., & Molotch, H.L. ( 1987). Urban fortunes: The political economy of place. Berkeley: University of California Press.
34.
Long, J.S. ( 1997). Regression models for categorical and limited dependent variables. Thousand Oaks, CA: SAGE .
35.
Lynch, R.G. ( 2004). Rethinking growth strategies: How state and local taxes and services affect economic development. Washington, DC : Economic Policy Institute.
36.
Lynch, R.G., Fishgold, G., & Blackwood, D.L. (1996). The effectiveness of firm-specific state tax incentives in promoting economic development: Evidence from New York State’s industrial development agencies. Economic Development Quarterly, 10, 57-68.
37.
Markusen, A., & Schrock, G. ( 2006). The distinctive city: Divergent patterns in growth, hierarchy and specialization. Urban Studies, 43, 1301-1323.
38.
Milligan, L. ( 2001). Economic development trends in local government. The municipal year book (pp. 9-20). Washington, DC: International City/County Management Association.
39.
Mintzberg, H. ( 1973). The nature of managerial work. New York, NY: Harper & Row.
40.
Molotch, H. ( 1976). The city as a growth machine: Toward a political economy of place. American Journal of Sociology, 82, 309-332.
41.
Olberding, J.C. ( 2002). Diving into the "third waves" of regional governance and economic development strategies: A study of regional partnerships for economic development in U.S. metropolitan areas. Economic Development Quarterly, 16, 251-272.
42.
Pagano, M.A., & Bowman, A.O. ( 1992). Attributes of development tools: Success and failure in local economic development. Economic Development Quarterly , 6, 173-186.
43.
Peters, A.H. ( 1993). Clawbacks and the administration of economic development policy in the Midwest. Economic Development Quarterly, 7, 328-340.
44.
Peters, A.H., & Fisher, P.S. ( 1997). Do high-unemployment states offer the biggest business incentives? Results for eight states using the "hypothetical firm" method . Economic Development Quarterly, 11, 107-122.
45.
Piore, M.J., & Sabel, C.F. ( 1984). The second industrial divide: Possibilities for prosperity . New York, NY: Basic Books.
46.
Porter, M.E. ( 2000). Location, competition and economic development: Local clusters in a global economy. Economic Development Quarterly , 14, 15-34.
47.
Prager, A.J. ( 1995). Local economic development: Trends and prospects. MunicipalYearbook. Washington, DC: International City/ County Management Association.
48.
Reese, L.A. ( 1991). Municipal fiscal health and tax abatement policy. Economic Development Quarterly, 5, 23-32.
49.
Reese, L.A., & Fasenfest, D. ( 1996). More of the same: A research note on local economic development policies over time. Economic Development Quarterly, 10, 280-289.
50.
Reese, L.A., & Fasenfest, D. ( 1999). Critical perspectives on local development policy evaluation . Economic Development Quarterly, 13, 3-7.
51.
Rubin, H.J. ( 1988). Shoot anything that flies; claim anything that falls: Conversations with economic development practitioners. Economic Development Quarterly, 2, 236-251.
52.
Sabel, C.F. ( 1992). Studied trust: Building new forms of cooperation in a volatile economy. In F. Pylee & W. Sengenberger (Eds.), Industrial districts and local economic regeneration (pp. 215-250). Geneva, Switzerland: International Institute for Labor Studies.
53.
Sands, G., Reese, L.A., & Khan, H.L. ( 2006). Implementing tax abatements in Michigan: A study of best practices. Economic Development Quarterly, 20, 44-58.
54.
Servon, L.J. ( 1997). Microenterprise programs in U.S. inner cities: Economic development or social welfare?Economic Development Quarterly , 11, 166-180.
55.
Sharp, E.B., & Elkins, D.R. ( 1991). The politics of economic development policy. Economic Development Quarterly, 5, 126-139.
56.
Shuman, M. ( 1998). Going local: Creating self-reliant communities in a global age. New York, NY: Free Press.
57.
Sullivan, D.M. ( 2002). Local governments as risk takers and risk reducers: An examination of business subsidies and subsidy controls. Economic Development Quarterly, 16, 115-126.
58.
Warner, M.E. ( 2001). Local government support for community-based economic development. The Municipal Yearbook (pp. 21-27): Washington, DC : International City/County Management Association .
59.
Warner, M.E. ( 2009). Recession, stimulus and the child care sector: Understanding economic dynamics, calculating impact. Linking economic development and child care project. Ithaca, NY: Cornell University. Retrieved from http://economicdevelopmentandchildcare.org/documents/publications/163.pdf
60.
Warner, M.E., & Liu, Z. ( 2006). The importance of child care in economic development: A comparative analysis of regional economic linkage. Economic Development Quarterly, 20, 97-103.
61.
Watson, D.J. ( 1995). The new Civil War: Government competition for economic development. New York, NY: Praeger .
62.
Wolkoff, M.J. ( 1992). Is economic decision making rational? Urban Affairs Quarterly, 27, 340-355.
63.
Wolman, H. ( 1988). Local economic development policy: What explains the divergence between policy analysis and political behavior? Journal of Urban Affairs, 10, 19-28.
64.
Wolman, H., & Spitzley, D. ( 1996). The politics of local economic development. Economic Development Quarterly, 10, 115-150.
