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Enterprise zones: 2. A comparative analysis of zone performance and state government policies

By R A Erickson and S W Friedman

Abstract

This is the second of two papers in which the programmatic structure and effectiveness of state government designated enterprise zones (EZs) are analyzed. With use of data on EZs from 14 states, the relationships are examined between job and/or investment gains and variables reflecting different state policies, zone locations, and zone settings. It is argued that, if states wish to purse EZ policies, they should focus on a small number of retrievable' zones, adopt a broad and quality package of business incentives, use no more restrictive designation criteria than needed, explore the possibilities of more direct targeting of existing state development activities into the zones, and seek strong local participation in the promotional effort.

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