UW-Madison UW-Madison

Staff Paper No. 578 - Abstract

Factors Affecting the Interstate Migration of Manufacturing Firms: Much to do About Nothing?

Steven Deller [scdeller@wisc.edu]
Tessa Conroy [tconroy2@wisc.edu]
Alexandra Tsvetkova [tsvetkova.1@osu.edu]

Staff Paper No. 578, March 2015, 26p.


Manufacturing recruitment remains an important part of most state and local governments’ economic development portfolio. Using a panel (2000 to 2011) of firm interstate migration data for manufacturer across the lower 48 states we model how state and local government fiscal policies influence firm migration patterns. We find that very few manufacturing firms migrate across state lines in any given year. State and local governments are attempting to recruit from a very small number of relocating manufacturers. Indeed, most firms that do relocate across state lines tend to move to neighboring states. Fiscal policies have mixed and somewhat inconsistent influence of manufacturing interstate migration patterns.
Last updated on Tue, Mar 31, 2015 4:40pm