Something New or More of the Same in the Bidding Wars for Big Business?

The economic downturn that began in 2007–2008 was blamed by some commentators on neoliberalism and pro‐business policies. So we might expect U.S. state and local governments to have responded with policy changes affecting their neoliberal economic development strategies. Based on this assumption, this paper is a theoretically informed examination of recent high‐profile bidding wars in Wisconsin. The highest profile example was in 2009 when General Motors chose a plant in Michigan over Wisconsin and Tennessee for a new small car line. Wisconsin's Commerce Secretary characterized Michigan's $1.2 billion incentive offer as “absolutely crazy” (compared with his state's $409 million offer!). My main research question is how have Wisconsin state and local governments adjusted their neoliberal economic development efforts in these bidding wars given the recent economic downturn and weak economy? This paper uses the largest incentive offers in Wisconsin during the tenure of the current and previous state governors within the context of ten themes drawn from the literature to problematize the neoliberal policy of bidding for big business. It concludes by considering the implications for economic development policies.     

Co‐creating an Open Government Action Plan: The Case of Sekondi‐Takoradi Metropolitan Assembly,Ghana

This paper contributes to the limited literature on open government initiatives at the subnational level in developing countries. It examines the motivations of actors in a local government authority to utilize the capabilities of various stakeholders to overcome constraints in cocreating an action plan for open government reforms. This empirical analysis utilized qualitative fieldwork conducted in Sekondi‐Takoradi Metropolitan Assembly, Ghana's third largest local government. The findings demonstrate that a confluence of citizen demand for openness, and willingness within the governance stakeholders, are motivating the pursuit of open government reforms. Viewed through an open innovation framework, we argue that achieving good governance through information transparency, public participation, and accountability reforms is hindered by the institutional environment. Ghana's subnational governments need national level commitment to provide the resources, mandate, and authority to become truly “open.”     

Should State and Local Government Bidding for Big Businesses Be More Like eBay?

During recent decades, and especially after the economic downturn that began in the late 2000s, many U.S. state and local governments have intensified their pro‐growth efforts to promote corporate investment and jobs, including ever higher incentives (such as tax breaks and grants) in their bidding wars for big businesses. This paper draws an analogy—between bidding for big businesses and bidding on eBay—to highlight the drawbacks of high‐profile bidding wars among governments given that the large corporations establish the bidding rules in their favor. The main consideration raised is whether state and local government bidding for big businesses, which operates analogously to an auction, should be more like eBay, whose rules are fair not only for sellers but also for bidders.     

Why Do Localities Provide Economic Development Incentives? Geographic Competition,Political Constituencies,and Government Capacity

U.S. states and localities often engage in economic development policies using incentives and abatements for specific firms or industries. Yet, there is very little empirical evidence suggesting that such policies are successful. Why, then, do governments engage in these policies? In order to answer this question, we employ a model that considers not only geographic and economic factors, but also, in a novel application, local political conditions. A unique survey of U.S. county governments forms the basis for our empirical assessment of both traditional economic development policies and new‐wave policies. Using probit, Poisson, negative binomial, and spatial econometric models, we find evidence that the use of incentives is inversely related to local economic conditions. Furthermore, we find Republican counties are more apt to use incentives, though counties dominated by one political party are less likely to use them.     

Did incentives help municipalities recover from the Great Recession? Evidence from Midwestern cities

This study assesses the impacts of local business incentives in the largest urban areas of Illinois, Michigan, and Wisconsin, three Midwestern states that share similar histories and settings. We assembled a unique dataset combining information on two types of incentives, tax increment financing districts and tax abatements, together with socio‐economic, geographic, fiscal, and spatial competitive characteristics for all of the municipalities in six metropolitan areas. The outcome measures include employment growth, establishment formation, and business relocation. The analysis extends knowledge of the effects of economic development incentives in two ways. First, we improve upon previous research by incorporating key factors in municipal decisions to offer incentives. Second, we add to limited empirical evidence concerning local incentives following the Great Recession. Variation in the use of incentives reflects not only local decision‐making but also differing fiscal capacities and situations of adaptation to adverse economic conditions, with some governments pulling back on incentives and others initiating new approaches to retain or lure businesses.     

Tax enforcement interactions among Chinese provinces: A frontier and spatial analysis

Spatial interactions in tax policy have been examined intensively for developed countries. This study presents new evidence of tax enforcement interactions from a developing country. A trend of intensified enforcement on the corporate income tax (CIT) over time is identified among Chinese provinces. Additionally, stringent CIT enforcement in neighboring provinces enhances CIT enforcement in the surrounded province. Furthermore, tax enforcement interactions involve both the state and local tax authorities. The findings not only help to understand the Chinese “regionally decentralized authoritarian system,” but also echo second‐generation fiscal federalism that highlights the role of institutional incentives in shaping intergovernmental fiscal relations.     

Can the Informal Economy Be “Managed”?: Comparing Approaches and Effectiveness of Day‐Labor Management Policies in the San Diego Metropolitan Area

Day‐labor hiring sites are found in more than 120 municipalities across the U.S., there is limited research examining the specific drivers that generate direct interventions into the day‐labor market, nor is there any research examining the effectiveness of day‐labor management policies. In what follows, I draw on examples from the San Diego Metropolitan Area (SDMA) to address this gap in policy‐research. The findings demonstrate the pervasiveness of neoliberal ideology in day‐labor management, from policing strategies to social service provision. In each case examined, local governments only took direct action when they believed day‐labor activity threatened local commercial activity or when residents' fear of “illegal immigrant” day‐laborers made them question the state's ability to control space effectively. In each case, I also evaluate the effectiveness and cost of the management strategy. The results of this analysis clearly demonstrate that attempts to eliminate day‐labor activity are costly and expensive while efforts to formalize day‐labor cost less and have a higher success rate.     

Economic development incentive program deadweight: The role of program design features,firm characteristics,and location

This paper examines the effectiveness of state economic development incentive programs in stimulating new business activity. It reviews literature that identifies factors that potentially influence the effectiveness of incentives. Empirical work draws on a 2018 survey of approximately 150 firms that received at least one award for startup, expansion, or relocation purposes during the period SFY2010–SFY2016 from a state economic development incentive program (i.e., grant, tax credit, loan, equity investment) offered by the Commonwealth of Virginia. The paper evaluates the role of program design features (e.g., discretionary vs. automatic, relative size of incentive), firm characteristics (e.g., size of firm, industry), and locational variables (e.g., state boundary location, rurality) on firm assessments of the role of incentives in business growth decisions. It finds that firms that receive up-front or discretionary program awards and undertake multistate site searches are less likely to report that the incentive was not needed for their project to succeed. These results suggest that automatic, back-loaded award programs, and programs that fund noncompetitive projects are less likely to affect firm location and expansion decisions.     

Linking Policy and Outcomes: A Simulation Model of Poverty Incidence

ABSTRACT Many states are striving to meet public demand for accountability by “benchmarking”—setting social goals for the state and tracking progress in meeting the goals. However, states are finding it difficult to set realistic targets and to assess the impacts of policy on achievement of the targets without a framework that models the relationships among policy targets, policy actions and social and economic forces outside the control of policymakers. This paper develops a dynamic simulation model of one “benchmark” (poverty incidence) in Oregon, linking transitions into and out of poverty to various events (increased earnings, or having a child as a teenager, for example), and linking these events to policy. The simulation results suggest that, with current policies, Oregon will come close to achieving its poverty benchmark target of 11 percent by the year 2000 if economic conditions remain favorable. The model is used to examine the impact on poverty incidence of three policy strategies: reducing high school dropout and teen pregnancy rates, increasing the effectiveness of social support programs to JOBS participants, and boosting job growth. The simulation results suggest that when assessing the state's performance or “grading” the observed trend in the poverty benchmark, policymakers should take into account the performance of the state (and national) economy. The impact of policy efforts to reduce poverty is limited because many poverty spells are caused largely by events not affected by current state policies.     

Impact of Chinese market segmentation on regional collaborative governance of environmental pollution: A new approach to complex system theory

The market segmentation among local governments under decentralization of China not only directly triggered the “fragmentation” of regional development, but also hindered collaborative actions in environmental governance. This study adopts a new method to calculate regional environmental collaborative governance using a synergy degree model of a complex system, and then it empirically analyzes the impact of Chinese market segmentation. We find that the regional environmental collaborative governance in China shows a growing trend during the period of investigation, but the level is still low. Market segmentation has significantly inhibited the regional collaborative governance of environmental pollution among local governments of China. The effect of market segmentation on the order of personnel input and capital input is significantly negative, while the effect on the order of policy input and organizational input is not significant. In the areas where the air pollution and water pollution are serious, the effect of market segmentation is also significantly negative. The conclusions are helpful to understanding the institutional factors that hinder regional environmental collaborative governance in China more comprehensively, and provide insights for improving the performance of environmental governance.     

Poverty and Local Governments: Economic Development and Community Service Provision in an Era of Decentralization

Social scientists have given substantial attention to poverty across U.S. localities. However, most work views localities through the lens of population aggregates, not as units of government. Few poverty researchers question whether governments of poorer localities have the capacity to engage in economic development and service activities that might improve community well‐being. This issue is increasingly important as responsibilities for growth and redistribution are decentralized to local governments that vary dramatically in resources. Do poorer communities have less activist local governments? Are they more likely to be engaged in a race to the bottom, focusing on business attraction activities but neglecting services for families and working people? We bring together two distinct literatures, critical research on decentralization and research on local development efforts, that provide contrasting views about the penalty of poverty. Data are from a unique, national survey of county governments measuring activity across two time points. The most consistent determinants of activity are local government capacity, devolutionary pressures, and inertia or past use of strategies. Net of these factors, levels and changes in poverty do not significantly impact government activity. There is no evidence the nations' poorest counties are racing to the bottom. Findings challenge views that poverty is a systematic structural barrier to pursuing innovative economic development policies and suggest that even poorer communities can take steps to build local capacity, resources, and networks that expand programs for local businesses and low‐wage people.     

Urban Governance in Africa Today: Reframing,Experiences, and Lessons

Progress in analysing the instrumental view of governance as an engine for growth, poverty reduction, and inclusive development has been held back by the difficulty in framing governance. This essay seeks to address this problem by 1) reframing urban governance 2) evaluating its aims, processes, and outcomes, and 3) explaining those outcomes on the basis of which some lessons are teased out. Using examples from Africa and an institutional political economy approach (based on institutional economics, Marxist political economics, Georgist political economics, and Polanyian political economy), I show that, overall, while urban economies are growing; both urban poverty and inequality levels have risen substantially. Urban governance has paved the way for new forms of urban development that only benefit the few. Not only are there differences in how urban services and resources are experienced, accessed, and controlled but the varieties are also socially differentiated. I argue that the underlying reasons for this disjuncture between “urban governance” in theory and “actually existing urban governance” are 1) difficulties in implementing urban governance theory consistently in practice, 2) problems arising because urban governance theory has been implemented in practice, 3) tensions that would entangle most policies which do not address historical and structural economic issues, 4) restrictive assumptions, and 5) incoherence among the different dimensions of urban governance. To resolve these contradictions, I put the case for major structural and institutional change involving: 1) the re‐ordering of the roles of the state, market, and society as institutions of change; 2) re‐working the relationships that bind together land, labour, capital, and the state, and 3) re‐organising the channels for keeping the attainment of the ends of urban governance in check.     

Rural land reforms and villagers' preferences for urban settlement: A case study of Shandong Province,China

Based on surveys conducted in Shandong Province, China, this paper examined the interests of rural residents to move to and settle in cities, as well as the factors that motivate or discourage their potential settlement changes. Results of the binary logistic regression analysis showed that villagers' urban settlement preference was related to sociodemographic factors such as gender, age, and occupation. Overall, the separation of the “three rights” (collective ownership, land contract right, and land use right) associated with rural land has strengthened the urban settlement preference of rural residents. Nevertheless, we did not find significant association between land transfer and the preference for urban settlement. For villagers who expressed interest in urban settlement, better job opportunities, education opportunities, and higher income are the leading “pull” factors that would attract them to cities. The attachment to rural life, high living costs, and high housing prices in cities were the top concerns for villagers who did not want to move. The study also found that villagers' desired urban destinations changed with the changing land parameters, indicating that the outcomes of China's rural land reforms may not be aligned well with the policy goals laid in the country's urbanization and rural development plans.     

The LEADER approach and drivers of job creation

This study investigates the links between rural development funding delivered via LEADER and job creation. Analysis is carried out using application‐level data during the 2007–2013 period in Northern Ireland. A two‐step procedure is employed to estimate a negative binomial model and correct for sample selection. Results indicate that there is a positive relationship between the number of jobs created and the amount of funds awarded, and that this depends on what Measure within Axis 3 applications are submitted under. More economic‐focused Measures, such as Farm Diversification, Business Development, and Tourism show a positive relationship between the amount of public funds and the number of jobs created. No such relationship was found for the more social, or cultural Measures. This result supports the argument that in such cases “jobs created” is not an appropriate indicator for evaluation purposes, but rather non‐economic criteria should be given priority to better suit the primary objective of such Measures. Other factors that are linked to job creation include applicant characteristics, such as its business status. In general, we find a limited connection between the process to select which applications are funded and the application characteristics most strongly associated with job creation.     

The Arts and Employment: A Case Study of the Stratford Festival

This paper examines the impact of the Stratford Festival on employment within the community of Stratford, Ontario. The specific objective is to calculate the number of “secondary” jobs created in Stratford per “primary” job generated at the festival. This is achieved in three stages. First, primary employment is calculated from information provided by theatre personnel. Second, secondary employment is assessed from information collected in a survey of local business proprietors. Third, a festival-employment multiplier is derived. This reveals the number of secondary jobs created in the community per job at the festival. Results indicate that 1.6 jobs result in Stratford for every job generated at the theatre. This finding provides evidence that cultural organizations contribute positively to the economic climate of a community. The economic consequences of cultural events constitute an important argument for their continued support.     

Immigration,Migration, and State Redistributive Expenditures

The effect of immigration on state and local budgets is a frequent topic of both political and academic conversations. A controversial issue among scholars is whether or not immigration induces outmigration of low income native born residents, a population movement which would potentially have implications for the jurisdictional distribution of immigration's fiscal impact. It is hypothesized here that if interstate poverty migration occurred, it should cause fiscal spillovers by distributing some of the public sector burden of immigration from immigrant “host” states to neighboring states. This paper uses cross‐sectional state data from 1988–1995 to explore the relationship between immigration in neighbor states and state redistributive expenditures. The results suggest that there is a positive relationship between immigration to neighboring states and redistributive expenditures. While most discussion of the fiscal impact of immigration has focused on the effects on host states and localities, the implications of these findings are that there are fiscal spillovers to neighboring states, suggesting that fiscal impacts on host states have been over‐estimated and effects on neighboring states have been underestimated. Additionally, the implications of recent welfare reform, which gives states the opportunity to use citizenship as a criterion for program eligibility, are discussed.     

Impacts of newly liberalised policies on customary land rights of forest‐dwelling populations: A case study from East Kalimantan,Indonesia

Based on interviews and participant observation conducted in the province of East Kalimantan, Indonesia, from 2008 to 2012, this paper examines why the agrarian reforms have failed to secure the land rights of local farmers. Since the fall of the authoritarian government in 1998, Indonesia has seen limited, but growing government recognition of customary land rights of local farmers living in forest areas. I present a case study of two villages, in which the greater discretion on the part of the local community to negotiate with large‐scale oil palm estates has led to the abuse of power by local elites, as well as territorial tensions between local communities. The finding questions the optimistic view that state recognition of customary land rights of communities would automatically lead to the security of landownership of local farmers, and its underlying image of harmonious local communities in which members share coherent interests. The agrarian reform that has centred on communities' rights of control over land and natural resources is problematic. When local communities do not possess capabilities for resolving conflicts in an equitable and transparent manner, third‐party intervention is needed to assist communities to strengthen local land rights.     

The Source of Metropolitan Growth: The Role of Commuting

Over the past few years, a large number of studies have focused on whether population or employment is critical to the source of metropolitan growth. However, only few attempts have so far been made to additionally consider the suburbanization stage and pattern of commuting, which may both enable us to explore this “chicken–egg” issue a little further. The purpose of this paper is to compare dwelling‐based (housing) with job‐based (job) employment to evaluate the net commuting. The Taipei metropolitan area, for example, now lies at the initial suburbanization stage with only population decentralization and massive in‐commuting to the central city. The estimation results based on a co‐integration system reveal that the central‐city employment can be regarded as an engine of this metropolitan economy. Besides, we also find that dwelling‐based employment distorts the causality between population and employment, especially from the variance‐decomposition accounts. Therefore, the importance of commuting to investigating the evolution of metropolitan economy should not be overlooked.     

新型农民科技培养模式的创新与实践研究——“沈阳市农村青年科技人才研修工程”模式与运行机制

农民教育是社会主义新农村建设的核心问题。培养一大批用得上、留得住、掌握一定专业知识的新型农民，农民教育是关键。由大学和地方政府科技部门共同实施的“沈阳市农村青年科技人才研修工程”， 探索出“政府出资、大学培训、农民受益” 的科技培养新模式，搭建了科技培训平台，为社会主义新农村建设培养出一大批“懂技术、善经营、留得住、用得上”的新型农民，已产生了很好的经济效益和社会效益，是解决“三农”问题的一大创举。     

How States Augment the Capabilities of Technology–Pioneering Firms

State governments offer a variety of programs to assist technology intensive entrepreneurial firms yet there is a limited understanding of how firms use these programs. This paper provides a framework for categorizing state technology programs and uses detailed case studies to examine how these programs augment firms’ capabilities. It is concluded that firms made extensive use of state programs that provide access to university intellectual property and research facilities. In addition, firms participated in programs that provided incentives for faculty to conduct joint research with industry. Finally, state venture capital programs, though small relative to federal R&D grants or venture capital, appear to nurture firms’ development.