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.
CITATION STYLE
Holmes, T. J. (1998). The effect of state policies on the location of manufacturing: evidence from state borders. Journal of Political Economy, 106(4), 667–705. https://doi.org/10.1086/250026
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