Amenities as an Economic Development Tool: Is there Enough Evidence?

Abstract

The argument for using amenities as an economic development tool appears to be a powerful one. Even if such a strategy failed to attract industry, constituents presumably would benefit. Outside of the survey literature, however, there is little hard evidence that firms actually react to "quality of life" in their location decisions. This article reviews the theoretical, survey, and econometric literatures on amenity-oriented firm location and employment growth. Though limited, the existing literature suggests that an amenities strategy for development should be regional; that jurisdictions should focus on basics like schools, environment, crime, and congestion; and that amenities should be managed in the broader context of trends in urbanization.