Metropolitan government and economic development

Academic and political debate regarding the desirability of metropolitan go vernment has focused on the provision of public goods. Although efficient p roduction of services is of great importance, the consequences of metropoli tan government for economic development have remained unexplored. The autho rs assess the development impacts of city-county consolidation by examining the attraction of manufacturing and retail/service firms for nine consolid ated governments from 1950 to 1993. The annual growth in manufacturing, ret ail, and service establishments in the county before the merger is compared to the record afterward. No support emerges for the idea that consolidatio n enhances economic development.