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Article
Do state business climate indicators explain relative economic growth at state borders?
Journal of Regional Science.
  • Georgeanne M. Artz, Iowa State University
  • Kevin Duncan, Iowa State University
  • Arthur Hall, University of Kansas
  • Peter Orazem, Iowa State University
Document Type
Article
Publication Version
Submitted Manuscript
Publication Date
1-1-2016
DOI
10.1111/jors.12261
Abstract

This study submits eleven business climate indexes to tests of their ability to predict relative economic performance on either side of state borders. Our results show that most business climate indexes have no ability to predict relative economic growth regardless of how growth is measured. Some are negatively correlated with relative growth. Many are better at reporting past growth than at predicting the future. In the end, the most predictive business climate index is the Grant Thornton Index which was discontinued in 1989.

Comments

This is a working paper of a article from Journal of Regional Science 56 (2016): 395, doi:10.1111/jors.12261.

Citation Information
Georgeanne M. Artz, Kevin Duncan, Arthur Hall and Peter Orazem. "Do state business climate indicators explain relative economic growth at state borders?" Journal of Regional Science. Vol. 56 Iss. 3 (2016) p. 395 - 419
Available at: http://works.bepress.com/georgeanne-artz/29/