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When Do States Pursue Targeted Economic Development Policies? The Adoption and Expansion of State Enterprise Zone Programs |
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Abstract:
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Although considerable scholarly attention has been devoted to assessing the economic impact of enterprise zones, what has been overlooked is the political question of when do states decide to adopt enterprise zone programs to aid distressed areas and whether those programs can maintain their focus on the distressed areas over time. Enterprise zones are a form of targeted economic development policy that provide special tax incentives to attract and retain companies to a few eligible poor communities, instead of the entire state. This research examines two questions. First, when do states adopt enterprise zones to benefit economically depressed regions? Second, when do states subvert the original targeted intent of the enterprise zone legislation by increasing the number of enterprise zones? We find that greater control of state government by Democrats significantly increases the likelihood of a state adopting an enterprise zone program, all else equal. At the same time, our results suggest that implementation of enterprise zone programs is driven by an entirely different set of political and economic dynamics. Specifically, a states’ commitment to and implementation of a targeted economic development policy gradually wanes in the face of interstate competition, the maturation of the program, and strong economic conditions. We seek to contribute to the literature on state policy innovation by extending our analysis to examine the implementation of the enterprise zone program. |
Most Common Document Word Stems:
state (237), zone (195), enterpris (163), econom (139), program (125), polici (105), develop (73), adopt (65), polit (59), target (55), number (45), govern (36), area (36), increas (34), 1 (32), p (31), like (30), time (30), distress (30), model (28), urban (28), |
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Association:
Name: The Midwest Political Science Association URL: http://www.indiana.edu/~mpsa/
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Citation:
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MLA Citation:
| Cassell, Mark. "When Do States Pursue Targeted Economic Development Policies? The Adoption and Expansion of State Enterprise Zone Programs" Paper presented at the annual meeting of the The Midwest Political Science Association, Palmer House Hilton, Chicago, Illinois, Apr 07, 2005 <Not Available>. 2009-05-25 <http://www.allacademic.com/meta/p86703_index.html> |
APA Citation:
| Cassell, M. , 2005-04-07 "When Do States Pursue Targeted Economic Development Policies? The Adoption and Expansion of State Enterprise Zone Programs" Paper presented at the annual meeting of the The Midwest Political Science Association, Palmer House Hilton, Chicago, Illinois Online <.PDF>. 2009-05-25 from http://www.allacademic.com/meta/p86703_index.html |
Publication Type: Conference Paper/Unpublished Manuscript Review Method: Peer Reviewed Abstract: Although considerable scholarly attention has been devoted to assessing the economic impact of enterprise zones, what has been overlooked is the political question of when do states decide to adopt enterprise zone programs to aid distressed areas and whether those programs can maintain their focus on the distressed areas over time. Enterprise zones are a form of targeted economic development policy that provide special tax incentives to attract and retain companies to a few eligible poor communities, instead of the entire state. This research examines two questions. First, when do states adopt enterprise zones to benefit economically depressed regions? Second, when do states subvert the original targeted intent of the enterprise zone legislation by increasing the number of enterprise zones? We find that greater control of state government by Democrats significantly increases the likelihood of a state adopting an enterprise zone program, all else equal. At the same time, our results suggest that implementation of enterprise zone programs is driven by an entirely different set of political and economic dynamics. Specifically, a states’ commitment to and implementation of a targeted economic development policy gradually wanes in the face of interstate competition, the maturation of the program, and strong economic conditions. We seek to contribute to the literature on state policy innovation by extending our analysis to examine the implementation of the enterprise zone program. |
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| Document Type: |
.PDF |
| Page count: |
32 |
| Word count: |
7986 |
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| When Do States Pursue Targeted Economic Development Policies? The Adoption and Expansion of State Enterprise Zone Programs Robert C. Turner Assistant Professor Government Department 315 Ladd Skidmore College Saratoga Springs NY 12866 518-580-5251 bturner@skidmore.edu Mark Cassell Associate Professor Department of Political Science Kent State University 302 Bowman Kent Ohio 44242 330-672-8945 (w) mcassell@kent.edu Abstract Although considerable scholarly attention has been devoted to assessing the economic impact of enterprise zones what has been overlooked is the political question of when |
| Government 60% Unified Democrat 40% Government 20% 0% 1982 1984 1986 1988 1990 1992 1994 1996 Note: The predicted probabilities were made using the coefficient estimates from model 1 in Table 1. 31 |
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