State Incentive Packages and the Industrial Location Decision

Abstract

Since 1980 there has been both a rapid escalation in the costs associated with industrial recruitment and a dramatic increase in the number of states vying for new auto assembly facilities. The following study reviews both the business and nonbusiness factors relevant in location determination, and focuses on the Nissan, Mazda, Saturn, Diamond-Star, Toyota, and Fuji-Isuzu plant announcements and the offered state incentive packages that have led to the recent formation of the "Japanese Auto Alley. "