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

  • Holmes T
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JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact 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.

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  • Thomas J. Holmes

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