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

Posted: 17 Sep 1998  

Thomas J. Holmes

University of Minnesota - Twin Cities - Department of Economics; National Bureau of Economic Research (NBER)

Abstract

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

Suggested Citation

Holmes, Thomas J., The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders. Journal of Political Economy, Vol. 106, No. 4, August 1998. Available at SSRN: https://ssrn.com/abstract=102913

Thomas J. Holmes (Contact Author)

University of Minnesota - Twin Cities - Department of Economics ( email )

271 19th Avenue South
919 Management & Economics
Minneapolis, MN 55455
United States
612-625-4512 (Phone)
612-624-0209 (Fax)

National Bureau of Economic Research (NBER)

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