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Journal of Political Economy Vol. 106 No. 4 1998

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

Thomas J. Holmes1,2

1 University of Minnesota · 2 Federal Reserve Bank of Minneapolis

Abstract

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.

DOI
10.1086/250026
Volume
106
Issue
4
Pages
667-705
Language
en
Sources
openalex crossref bibtex:phds-export.bib

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