The effect of state policies on the location of manufacturing: evidence from state borders

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Abstract

This paper provides new evidence that state policies play a role in the location of industry in the US. 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.

Original languageEnglish (US)
Pages (from-to)667-705
Number of pages39
JournalJournal of Political Economy
Volume106
Issue number4
DOIs
StatePublished - Aug 1 1998

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