The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders
Thomas J. Holmes
University of Minnesota - Twin Cities - Department of Economics; National Bureau of Economic Research (NBER)
Journal of Political Economy, Vol. 106, No. 4, August 1998
This paper provides new evidence that state policies play a role in the location of industry. The paper classifies a state as pro-business if it has a right-to-work law and anti-business 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 anti-business state into a pro-business state.
JEL Classification: R38, L60, L52
Date posted: September 17, 1998
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