Read “Interstate Relocation of Manufacturers and Business Climate.” reviewing Urban and Regional Development Studies.
- Very few manufacturing firms relocate across state lines in any given year.
- Those firms that do relocate are relatively small businesses and are most likely to move to neighboring states.
- Traditional factors associated with business climate, such as taxation, appear to influence manufacturing interstate relocation. However, the tax policy changes necessary for an economically significant effect on relocation are likely infeasible.
Contributors: Conroy, Tessa, Steven Deller, and Alexandra Tsvetkova.