Does state economic development spending increase manufacturing employment?

Charles de Bartolome () and Mark Spiegel

No 95-10, Working Papers in Applied Economic Theory from Federal Reserve Bank of San Francisco

Abstract: Recent studies, which have attempted to determine what causes an industrial sector in a state to grow, have ignored the general role of the state's economic development agency. We extend the analysis to include its effect, and determine that economic development expenditure by the state is a statistically significant determinant of manufacturing growth in the state. Our result is robust to a variety of specification tests.

Keywords: Economic development; state finances; Employment (Economic theory); Regional economics (search for similar items in EconPapers)
Date: 1995
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Published in Journal of Urban Economics (March 1997, v. 41, no.2, pp. 153-75)

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