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Impact of State Growth Management Laws on Economic Development

IJED, Vol. 4 No. 3, (2002)

What is the impact of state growth management laws on state economic performance? Growth management regulation is likely to affect private production decisions of builders and developers in ways that might hinder state economic performance. This paper combines the political economy and institutional approaches. Systematic analysis is conducted using statewide and temporal data from 1980 to 1993. The results indicate that institutional arrangements matter in explaining state economic performance such as growth state product (GSP) and personal income. The argument holds for economic development legislation, but we found partial support for growth management laws. State growth management laws had adverse effects only on personal income. The interactive effect between growth management laws and institutional arrangement is not significant
both for GSP and personal income.

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