Interactions Between Economic Growth and Environmental Quality in U.S. Counties

Linkages among changes in employment, earnings per worker, and pollution per square mile are estimated for 3,036 U.S. counties for the period 1987 to 1995 using a three-equation disequilibrium adjustment model. Counties with higher shares of African-Americans experienced higher earnings growth rates over the period 1987-1995, as did counties with proportionally more females. Counties in states with higher shares of unionized workers had higher earnings growth rates but generated fewer new jobs. Firm size had a significant and negative effect on earnings growth while higher costs of living were associated with higher earnings growth. Also, metro counties and counties in the Northeastern U.S. experienced higher earnings growth than their non-metro counterparts and counties in other geographic regions. Statistically, faster job growth was found to accelerate the rate of earnings growth per worker. The authors conclude that counties concerned with job growth should recruit or attempt to spawn the creation of larger firms, recognizing that for some firms such a strategy may come at the cost of more rapid increases in pollution. Counties concerned with increasing the rate of growth in per worker earnings should instead focus on the creation of smaller firms. Copyright 2004 Gatton College of Business and Economics, University of Kentucky..

MANUFACTURING FIRMS' VIEWS OF GOVERNMENT ACTIVITY AND COMMITMENT TO SITE: IMPLICATIONS FOR BUSINESS RETENTION POLICY

Relationships between a variety of firm characteristics and perceptions of government are investigated. Then views about government are considered in connection with firms' commitment to their present location. One finding that is well supported is that taxes and regulations (at least for this sample and within this region) are a source of considerable dissatisfaction. Satisfaction with government services does not come near "offsetting" the displeasure with taxes and regulations. Larger firms are more likely to have unfavorable perceptions of government constraints, but more likely to have favorable views about government services. There is no evidence from this data that high tech firms differ significantly from other firms in their views about government. In regards to implications for business retention, the findings support the notion that state governments seeking to market their state to businesses located elsewhere might turn a greater proportion of attention to businesses currently residing in the state. Copyright 1987 by The Policy Studies Organization.