The scholarly literature on economic development is replete with analysis of best practices, including how to lure businesses to one's community or develop businesses that are already present; what kinds of tax and regulatory regimes are favorable to economic development; and how different types of local taxation affect the way in which land is used for economic development. Additionally, a broad swathe of literature in urban studies views local economic development through the prism of globalization and deregulation, and how these broader trends in the national and world economy limit the variety of policies that can be implemented locally. This paper will shed light on a more structural question that places politics ahead of economics - how the political and institutional context within which local government operates affects the scale and choice of economic development policy. State governments provide that context in the US, and their policies, laws and constitutions determine the level and type of taxes and state aid that local places depend upon, whether or not municipalities receive need-based financial support from their state government, and even the extent to which policy-making power is devolved to municipalities. This dynamic significantly impacts the extent to which local places must actively intervene in the marketplace to ensure healthy expansion of their tax base. Accordingly, the paper tests two key outcomes of economic development policy - the level of economic development spending, and the extent to which communities are channeling this spending in the form of direct assistance to business or business-related infrastructure - according to several key state and local policies that may impact such policy and spending levels. These explanatory variables include the presence and level of redistributive, need-based state aid to local government; the presence and level of revenue sharing from the state; the presence or absence of municipal and/or county sales taxes; the form of local government and variations in the state regime of economic development funding. In particular, the paper tests the hypothesis that communities in states with redistributive approaches to revenue sharing spend far less on economic development assistance to private business than those in states with more decentralized and traditional forms of funding local government.

Does globalization menace our cities? Are cities able to exercise democratic rule and strategic choice when international competition increasingly limits the importance of place? Cities in the International Marketplace looks at the political responses of ten cities in North America and Western Europe as they grappled with the forces of global restructuring during the past thirty years. H. V. Savitch and Paul Kantor conclude that cities do have choices in city building and that they behave strategically in the international marketplace. Rather than treating cities through case studies, this book undertakes rigorous systematic comparison. In doing so it provides an innovative theory that explains how city governments bargain in the capital investment process to assert their influence. The authors examine the role of economic conditions and intergovernmental politics as well as local democratic institutions and cultural values. They also show why cities vary in their approaches to urban development. They portray how cities are constrained by the dynamics of the global economy but are not its prisoners. Further, they explain why some urban communities have more maneuverability than do others in the economic development game. Local governance, culture, and planning can combine with economic fortune and national urban policies to provide resources that expand or contract the scope for choice. This clearly written book analyzes the political economy of development in Detroit, Houston, and New York in the United States; Toronto in Canada; Paris and Marseilles in France; Milan and Naples in Italy; and Glasgow and Liverpool in Great Britain.

This report discusses the findings from a mail survey of local government economic development activities that was sent to all 540 municipalities and 100 counties in North Carolina. An important part of the analysis examines whether cities and counties differ significantly in their economic development efforts and whether smaller jurisdictions employ different types of development strategies and tools than larger ones. The survey findings also highlight the barriers that local governments face in promoting economic development and identify important technical assistance needs and gaps in local capacity.

This completely updated and revised edition of Levy's highly regarded work examines the important changes in the economic world faced by communities since publication of the first edition in 1981. Much new material has been added to reflect the increasingly important role of state government, heightened intermunicipal competition, rising foreign investment, the diminished availability of federal development funds, and more. Like the previous edition, this is designed as a how-to book for the practitioner as well as a resource for students of public administration, planning, and development economics. The author provides a general framework for considering the pros and cons of various economic development approaches, offers an overview of the new federal role in local economic development and the rationale for national economic development policy, and presents a systematic discussion of local economic development techniques, strategy, financing and tax abatement, federal and state programs, and marketing and promotion. Following a general introduction, Levy looks at the political context of economic development, local government organizations and personnel, and recent economic changes-- including the deindustrialization issue and foreign trade-related matters. Chapters on the role of the states, reasonable expectations, and local economic development in the national context are new to this edition, as is a chapter that surveys actual practitioner experience in order to identify what does and does not work in local economic development. Subsequent discussions focus on the use of public relations, advertising and marketing in local government; assessing economic development potential; development planning and financing; and labor markets and fiscal impacts. An important addition to this edition is the inclusion of a simple, generic PC-based fiscal impact model. Indispensable for anyone involved in local economic development, this new edition offers a comprehensive look at the development situation faced by communities as we move into the 1990s.

Economic Development in American Cities addresses the roles of municipal leaders and civic partners in promoting social equity by examining the experiences of five American cities in the 1990s—Austin, Cleveland, Rochester, Savannah, and Seattle. These five cities were chosen for their activist municipal administrations, robust policy agendas, and viable partnerships. Contributors familiar with each city evaluate the impact of equity investments and extract lessons for municipal leaders and policy agendas. Building on the past experiences of progressive cities, each case study city offers fresh perspectives and examples, told through a rigorous analysis of socioeconomic data and program outcomes combined with engaging stories about specific municipal administrations and policy agendas.

This dissertation is a study of the theory, practice, and impacts of economic development policy and practice in American cities, in an effort to answer the age-old question, "To what extent can government influence markets?" City governments face the classic economic problem of resource scarcity, and they experience the dilemma of having to choose how to allocate scarce resources among numerous competing interests. In the name of economic development, local governments assign public resources and employ various strategies and tactics, all designed to encourage economic growth. This study seeks to determine whether the economic development practices employed by local governments in U.S. cities are positively correlated with measures of economic growth in those cities. The major hypothesis of this study states, "The level of public sector economic development activity in U.S. cities is positively correlated with local economic growth." It is thought that cities that are more proactive in their economic development activity will have more economic growth, all other things being equal. A quantitative data set of 412 American cities was built from multiple sources, and multivariate correlation and regression analysis is conducted to discover whether there is a statistically significant relationship between the economic development programs in U.S. cities and economic growth in those cities. The analysis reveals that economic development policy only has a weak correlation with growth, suggesting that economic growth is determined by market conditions rather than government intervention. City leaders are nonetheless still expected to continue to employ numerous economic development policies, largely due to political pressures. The final chapters of this dissertation offer policy recommendations that are based in these economic and political realities.

The Rise of the Entrepreneurial State charts the development of state and local government initiatives to influence the market and strengthen economic development policies. This trend marked a decisive break from governments' traditionally small role in the affairs of private industry that defined the relationship between the public and private sector for the first half of the twentieth century. The turn to state and local government intervention signaled a change in subnational politics that, in many ways, transcended partisan politics, regional distinctions ,and racial alliances. Eisinger's meticulous research uncovers state and local governments' transition from supply-side to demand-side strategies of market creation. He shows that, instead of relying solely on the supply-side strategies of tax breaks and other incentives to encourage business relocation, some governments promoted innovation and the creation of new business approaches.

T h e U n i t e d S tat e s has the most prosperous economy in the world, but American cities are not equal. Our cities are very diverse in terms of income levels, amenities, business climate, quality of life, and many other factors. This book analyzes economic differences between US cities and asks the questions, "To what extent can government improve a local economy?" and "Should government step back and let free market forces grow the economy?" For centuries scholars like Adam Smith and John M. Keynes have argued about the place of government in capitalist economies. Their theories, and the theories of others, have led to a vast array of economic development policies, practices, and programs employed at every level of government. This book explores the theoretical perspectives driving economic development policy, then examines current economic development practices, and finally, empirically evaluates the impact of the practices. The empirical data, cases studies, and anecdotes presented in the book consistently support the idea that cities where market principles are applied are the most prosperous. These Market Cities serve as examples of how to improve a local economy through the power of free enterprise.