Geographic Redistribution of the U.S. Manufacturing and The Role of State Development Policy

Yoonsoo Lee ()

Working Papers from U.S. Census Bureau, Center for Economic Studies

Abstract: Competition among state and local governments to lure businesses has attracted considerable interest from economists, as well as legislators and policy makers. This paper quantifies the role of plant relocations in the geographic redistribution of manufacturing employment and examines the effectiveness of state development policy. Only a few studies have looked at how manufacturing firms locate their production facilities geographically; they have used either small manufacturing samples or small geographic regions. This paper provides broader evidence of the impact of plant relocations using confidential establishment level data from the U.S. Census Longitudinal Research Database (LRD), covering the full population of manufacturing establishments in the United States over the period from 1972 to 1992. This paper finds a relatively small role for relocation in explaining the disparity of manufacturing employment growth rates across states. Moreover, it finds evidence of very weak effects of incentive programs on plant relocations.

Keywords: entry; exit; relocation; tax incentive (search for similar items in EconPapers)
JEL-codes: H25 H73 J23 R58 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2007-03
New Economics Papers: this item is included in nep-geo and nep-pbe
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Citations: View citations in EconPapers (1)

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https://www2.census.gov/ces/wp/2007/CES-WP-07-06.pdf First version, 2007 (application/pdf)

Related works:
Journal Article: Geographic redistribution of US manufacturing and the role of state development policy (2008)
Working Paper: Geographic redistribution of U.S. manufacturing and the role of state development policy (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:07-06

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