TY - JOUR
T1 - Sectoral growth patterns at the metropolitan level
T2 - An evaluation of economic development incentives
AU - hUallacháin, Breandán Ó
AU - Satterthwaite, Mark A.
N1 - Funding Information:
This work was done under the auspices of NC1 Research, Evanston, IL with support from Economic Development Administration of the U.S. Department of Commerce. The statements, findings, and conclusions are those of the authors and do not necessarily reflect the views of the Economic Development Administration or NC1 Research. Satterthwaite’s work has also been supported by the National Science Foundation under Grant SES-8721283 and SES-9009546. Thomas Beam provided valuable research assistance. We are indebted to Dennis Cappoza, Thomas Hammer, John McDonald, Edwin Mills, James Peterson, and participants at an Economic Development Administration seminar for their helpful comments on early version of this work (see 6 huallachiin and Satterthwaite [27]).
PY - 1992/1
Y1 - 1992/1
N2 - Economic development incentives are much used and expensive, yet information on their effectiveness is scarce. This paper reports a regression analysis of employment growth in 37 disaggregated sectors across U.S. metropolitan areas in the time period 1977-1984. The results indicate that variation in taxes and subsidies are not related significantly to the location of either high-technology manufacturing or most services. Our results suggest, however, that enterprise zones and university research parks, which may be proxies for focused economic development programs, are associated with increased job growth. Nevertheless the strongest determinants of growth are localization and urbanization externalities, along with labor costs and skill factors. We hypothesize that localization economies operate through the reduction of information costs, especially those associated with firms' search behaviors for skilled labor forces.
AB - Economic development incentives are much used and expensive, yet information on their effectiveness is scarce. This paper reports a regression analysis of employment growth in 37 disaggregated sectors across U.S. metropolitan areas in the time period 1977-1984. The results indicate that variation in taxes and subsidies are not related significantly to the location of either high-technology manufacturing or most services. Our results suggest, however, that enterprise zones and university research parks, which may be proxies for focused economic development programs, are associated with increased job growth. Nevertheless the strongest determinants of growth are localization and urbanization externalities, along with labor costs and skill factors. We hypothesize that localization economies operate through the reduction of information costs, especially those associated with firms' search behaviors for skilled labor forces.
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U2 - 10.1016/0094-1190(92)90031-F
DO - 10.1016/0094-1190(92)90031-F
M3 - Article
AN - SCOPUS:38249013820
SN - 0094-1190
VL - 31
SP - 25
EP - 58
JO - Journal of Urban Economics
JF - Journal of Urban Economics
IS - 1
ER -
