This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Citation Map Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Add to Saved Citations Download to citation manager Request Permissions Request Reprints Add to My Marked Citations Citing Articles Citing Articles via Google Scholar Citing Articles via Scopus Google Scholar Articles by Schwartz, D. Articles by Keren, M. Search for Related Content Social Bookmarking                         What's this?

The Ineffectiveness of Location Incentive Programs

Evidence From Puerto Rico and Israel

Ben Gurion University of the Negev, dafnasch{at}som.bgu.ac.il

Joseph Pelzman

George Washington University and Ben Gurion University of the Negev

Michael Keren

Hebrew University of Jerusalem

Many countries use location incentives programs to attract investment into a recipient country as a whole or to priority regions, with the goal of promoting growth. The authors focus on two cases, both involving location-related incentives programs, one to shift resources to disadvantaged regions within a country (Israel) and the other to shift investment flows from the United States to a possession (Puerto Rico). In both cases, the programs led to increased employment in the short run but did not alter the fundamental economic problems of these areas. The authors show that there is a governmental failure in their operation of location-related incentives programs and that these governments find it difficult to discontinue incentive programs once they have been introduced.

Key Words: location incentive • international investment • international business • regional development • economic development

Economic Development Quarterly, Vol. 22, No. 2, 167-179 (2008)
DOI: 10.1177/0891242408314100


CiteULike    Complore    Connotea    Del.icio.us    Digg    Reddit    Technorati    Twitter    What's this?