Tj. Holmes, THE EFFECT OF STATE POLICIES ON THE LOCATION OF MANUFACTURING - EVIDENCE FROM STATE BORDERS, Journal of political economy, 106(4), 1998, pp. 667-705
This paper provides new evidence that state policies play a role in th
e location of industry. The paper classifies a state as probusiness if
it has a right-to-work law and antibusiness if it does not. The paper
finds that, on average, there is a large, abrupt increase in manufact
uring activity when one crosses a state border from an antibusiness st
ate into a probusiness state.