Governors, Economic Theory, and Development Policy

Abstract

This article examines governors' views on state economic development policy based on a distinction between two basic categories—supply-side and demand-side approaches. The former emphasizes business incentives, whereas the latter focuses on "homegrown" development through government-business cooperation. The findings, based on data collected from governors' offices in 41 states, reveal support for both approaches, but suggest that supply-side policies remain the more popular of the two. They also show that Republican governors tend to favor the supply-side approach, whereas Democrats emphasize demand-side policies.