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A Quasi-Market Framework for Development Competition

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This article describes a quasi-market framework to integrate the diverse perspectives on local government development competition found in the economic development literatures. Within this framework local governments seek to obtain positive externalities associated with economic growth through the provision of services and inducements to private firms in exchange for commitments of employment and investment. Efficient pursuit of economic development is impeded by market and government failures. Better understanding of how the quasi-market for economic development works promises to enhance our understanding of the relationships between economic and political demands and local development with important implications for evaluation of local growth policy and development competition.

Document Type: Original Article


Affiliations: Florida State University

Publication date: 2002-06-01

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