This book offers cross-national evidence of the effectiveness of financial and physical incentives for regional development. It challenges the traditional wisdom that competition is harmful for regional development or can be zero-sum. It answers questions such as: What are the effects of tax incentives on the rest of the economy? Do such incentives merely redistribute employment? Do tax and infrastructure incentives have any effect on the unemployment rate of areas adopting them?

KALA SEETHARAM SRIDHAR is a fellow at the National Institute of Public Finance and Policy, India. She was previously Associate Professor at the Indian Institute of Management. She received her Ph.D from the Ohio State University. Her research interests are in urban/regional development policies and developmental issues.

PART 1: INTRODUCTION Regional Development Incentives in the United States and India PART 2: TAX INCENTIVES: THEORY AND EVIDENCE Impact of Tax Incentives on Economies Competition Among American States: Evidence From Illinois Enterprise Zones Impact of Tax Incentives on Unemployment Rate: Evidence from Ohio Benefits and Costs of Regional Development: Evidence from Ohio's Enterprise Zone Program PART 3: INFRASTRUCTURE INCENTIVES: THEORY AND EVIDENCE Impact of Growth Centres on Unemployment and Firm Location: Evidence from India Firm Location Decisions and their Impact on Local Economies: Evidence from India's Growth Centres PART 4: LESSONS LEARNT Lessons Learnt from the United States and India