Semester

Fall

Date of Graduation

1998

Document Type

Thesis

Degree Type

MS

College

Davis College of Agriculture, Natural Resources and Design

Department

Agricultural and Resource Economics

Committee Chair

Scott Loveridge.

Abstract

Academic research in the area of economic development policy is overwhelmingly critical of industrial recruitment, recommending instead that resources be directed towards strategies such as business retention and expansion, fostering local entrepreneurship, and amenity development. This research moves beyond criticizing industrial recruitment policy and explores one potential reason, a high discount rate, for practitioners' reliance on recruitment over other available local development techniques. The research also investigates developer's probability of success for industrial recruitment as well as alternative development strategies and examines whether economic developer use of incentive packages to recruit local businesses is a rational decision, i.e., supported by the general public. Contingent valuation methods estimate discount rates of local economic developers from Ohio, Kentucky, Virginia, and West Virginia using a mail survey while West Virginia citizens were surveyed by phone.

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