The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders

This paper provides new evidence that state policies play a role in the location of industry. The paper classifies a state as probusiness if it has a right‐to‐work law and antibusiness if it does not. The paper finds that, on average, there is a large, abrupt increase in manufacturing activity when...

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Bibliographic Details
Published in:The Journal of political economy 1998-08, Vol.106 (4), p.667-705
Main Author: Holmes, Thomas J.
Format: Article
Language:English
Subjects:
BORDER, BORDER DISPUTE
Borderlands
Censuses
Coal
Economic growth rate
Economic policy
Economic theory
Economics
Effects
Employment
Entrepreneurs
Industrial policy
Industry (location)
Labour law
Labour relations
Location of industry
Manufacturing
Manufacturing industries
Political economy
Public Policy
Right to work
Right to work law
State Government
States
Statistical models
Trade unions
U.S.A
United States
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Summary:This paper provides new evidence that state policies play a role in the location of industry. The paper classifies a state as probusiness if it has a right‐to‐work law and antibusiness if it does not. The paper finds that, on average, there is a large, abrupt increase in manufacturing activity when one crosses a state border from an antibusiness state into a probusiness state.
ISSN:0022-3808
1537-534X
DOI:10.1086/250026