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Article
Do state business climate indicators explain relative economic growth at state borders?
Economics Working Papers (2002–2016)
  • Georgeanne M. Artz, Iowa State University
  • Kevin Duncan, Iowa State University
  • Arthur Hall, University of Kansas
  • Peter Orazem, Iowa State University
Document Type
Working Paper
Publication Date
10-2-2014
Working Paper Number
WP #14031, October 2014
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.
Disciplines
File Format
application/pdf
Length
38 pages
Citation Information
Georgeanne M. Artz, Kevin Duncan, Arthur Hall and Peter Orazem. "Do state business climate indicators explain relative economic growth at state borders?" (2014)
Available at: http://works.bepress.com/georgeanne-artz/3/