Economic Development Incentives: How to Measure Results
นอกจากการดูบทความนี้แล้ว คุณยังสามารถดูข้อมูลที่เป็นประโยชน์อื่นๆ อีกมากมายที่เราให้ไว้ที่นี่: ดูเพิ่มเติม
Each year, states collectively spend billions of dollars on economic development incentives. Are they worth the price? The answer isn’t always obvious. By asking key questions, states can evaluate incentive programs and provide the evidence policymakers demand.
Learn more at: http://www.pewtrusts.org/en/projects/economicdevelopmenttaxincentives
What’s the recipe for successful economic development?
Many states are using incentives such as tax credits, grants or loans given to companies to encourage them to do something they would not otherwise have done.
States have dramatically increased spending on incentives. Each year, states collectively spend billions of dollars on these programs.
Are they worth the price?
The answer isn’t always obvious. By asking key questions, states can evaluate incentive programs and provide the evidence policymakers demand.
Let’s say a state offers incentives to….. the food industry.
Tax credits go to Bob’s Bread Basket and Sofia’s Snacks.
Now, both companies enjoy lower costs and earn a larger profit.
Bob plans to expand his building and upgrade his equipment. Sofia lowers the price of her famed Grizzly Bear Granola Bars and hires new employees to keep up with increasing demand.
Both companies are expanding. But to what extent were incentives responsible?
When the incentive lowered Sofia’s costs, she hired new employees. But even without the incentive, her company still would have grown, so not all the new jobs at Sofia’s Snacks are the result of the incentive.
Let’s go back to Bob. He needed the incentive to expand his building, but he had already saved to upgrade his equipment.
Another key question to ask: how does the incentive affect other companies in the state?
If Sofia sells her granola bars locally, Ernie’s Energy Bars could lose customers because of Sofia’s lower price. Eventually, Ernie may let some of his employees go.
But if Sofia ships her Grizzly Bear Granola Bars nationwide, she’ll bring in money from outside the region and expand the size of the local economy, which would be good for local oat farmers who sell to Sophia. And Bob’s building expansion creates job opportunities in the local construction industry.
But, will all these jobs go to local workers?
Sofia’s profits continue to rise as she increases her national sales, and she needs to hire more employees. Some of these jobs will go to unemployed locals.
But, research suggests that more than ½ of new jobs will eventually be filled by outofstate workers who move into town.
So – do the benefits of incentives outweigh the alternatives?
Incentives are just one option for states. And they should be compared to other priorities, such as spending more on education or transportation, or tax cuts for all businesses. A dollar spent on an incentive can’t be used on something else, so states need to decide whether they are worth the price.
All states want the recipe for economic success. But only by answering key questions will your state know whether an incentive is the right ingredient for successful economic development.
Learn more about how states are effectively evaluating incentives: http://www.pewtrusts.org/en/projects/economicdevelopmenttaxincentives
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This is Economic Development
Economic Development is at the heart of every great community.
Economic developers have a common objective: building stronger, more resilient, inclusive economies.
We are here for you so we can build a stronger community together.
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The Rising Economy Of Philippines
The Philippines. One of the most dynamic economies in the East Asia Pacific region. With increasing urbanization, a growing middle class, and a large and young population. But this country has seen many ups and downs in the history. From one of the contenders of Asia’s tiger economy to the lower income country, the Philippines has gone through many changes.
The Philippines was once a model of development, and second among east Asian economies after Japan.
In the 1960s, when South Korea was a land of peasants, the Philippines was one of Asia’s industrial powerhouses. They produced consumer goods, processed raw materials and had assembly plants for automobiles, televisions, and home appliances. But in the 1970s and 80s, the Philippines economy declined, while its neighbors such as Japan, South Korea, and Taiwan made exponential growth.
The major reason behind this decline was the country’s protectionist policy. You see, after world war 2 imports of the Philippines increased drastically, and at the same time exports reduced. That led the country to follow protectionist policy. Due to this they lost many valuable investments in the region at that time. Other reasons include political unrest, social unrest, and corruption. Due to these reasons the Philippines fell out of the race of Asian tiger economy.
But by the start of 2000s the Philippines economy started to grow again. But how?
You see, many countries achieve their economic growth by slowly transitioning from agriculture to industry to service sector. Yet for Philippines this transition was very quick. The service sector of the Philippines overtook the industrial sector in terms GDP contribution during the early 80s. And increased from 36% in 1980 to 60% today. The services sector today employs 56.7% of the country’s workforce, which is more than the agricultural, and industrial sectors combined. The main reason behind the growth of service sector is that, the Philippines was a former US territory. And the US had a very strong cultural impact on Philippines. More than 90% of the people in the country speak English as their 2nd language. The cultural similarities gave them the opportunity to become the most popular business process outsourcing country. Plus other back office jobs are very well done here. And all of this for significantly low pay than the western countries.
Now if you look at the industrial sector, it still holds 30% share in the country’s GDP. And employs 18% of the country’s workforce.
This is why Philippines economy turned to the service sector so quickly in the 80s and 90s.
Another source that brings a big chunk income is remittance. The remittance accounts for more than 9% of the Philippines GDP. This makes them the 4th largest in terms of remittance. The major reason behind this is, the country has a large and young workforce, in fact the average age of a Philipino is just 25 years. But they lag to create well paid jobs to this huge manpower. So in order to make more money people tend to go work in foreign countries. Another reason is, the Philippines has a good education system which is suitable for many foreign countries. So the Philipino’s usually have the required skills to be hired.
Well, things look pretty good till here. But wait, we still haven’t talked about the challenges that Philippines is facing.
First let’s talk about FDI’s.
Compared to other regional countries, the Philippines has quiet low flow of foreign direct investments. There are many reasons for that, like relatively poor infrastructure which is a main problem for industrial as well as tourism sectors. Also some economic policy are making it harder for companies to do business. Today the Philippines is ranked 95th in ease of doing business index. And this is not good compared to other countries in the region.
Now if we take the service sector, which is the main pillar of the economy, then it might also face challenges in the future.
Now if you look about the present. Then lockdowns due to the pandemic made the situation worse for the domestic economy of Philippines. You see, the Philippines is still heavily dependent on cash transactions. And majority of people don’t even have a bank account. And this is making it harder for the government to provide relief packages. Even though the Philippines has managed to lift many people out of extreme poverty, this crisis could lead to increased poverty rate, and also income inequality between the urban and rural, which is not good in microeconomic terms.
So, in order to make economic progress, the Philippines really need to work on stuff.
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What is ECONOMIC DEVELOPMENT? What does ECONOMIC DEVELOPMENT mean?
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What is ECONOMIC DEVELOPMENT? What does ECONOMIC DEVELOPMENT mean?
Economic development is a term that economists, politicians, and others have used frequently in the 20th century. The concept, however, has been in existence in the West for centuries. Modernization, Westernization, and especially Industrialization are other terms people have used while discussing economic development. Economic development has a direct relationship with the environment and environmental issues.
Whereas economic development is a policy intervention endeavor with aims of economic and social wellbeing of people, economic growth is a phenomenon of market productivity and rise in GDP. Consequently, as economist Amartya Sen points out, \”economic growth is one aspect of the process of economic development\”.
The scope of economic development includes the process and policies by which a nation improves the economic, political, and social wellbeing of its people.
The University of Iowa’s Center for International Finance and Development states that:
‘Economic development’ is a term that economists, politicians, and others have used frequently in the 20th century. The concept, however, has been in existence in the West for centuries. Modernization, Westernisation, and especially Industrialisation are other terms people have used while discussing economic development. Economic development has a direct relationship with the environment.
Although nobody is certain when the concept originated, some people agree that development is closely bound up with the evolution of capitalism and the demise of feudalism.
Mansell and When also state that economic development has been understood since the World War II to involve economic growth, namely the increases in per capita income, and (if currently absent) the attainment of a standard of living equivalent to that of industrialized countries. Economic development can also be considered as a static theory that documents the state of an economy at a certain time. According to Schumpeter (2003), the changes in this equilibrium state to document in economic theory can only be caused by intervening factors coming from the outside.
นอกจากการดูหัวข้อนี้แล้ว คุณยังสามารถเข้าถึงบทวิจารณ์ดีๆ อื่นๆ อีกมากมายได้ที่นี่: ดูบทความเพิ่มเติมในหมวดหมู่Investement