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Foggy Business Climate Studies

  

Author:
Don Baylor /(512) 320-0222 x 108

June 30, 2005

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Texas ranks relatively high on several “business climate” indices that compare state policies and outcomes related to economic growth and vitality. Texas’ low business taxes are often claimed to be a magnet for relocating businesses and a catalyst for interstate competitiveness and survival of existing firms. But in a new book, Grading Places: What do the Business Climate Rankings Really Tell Us? (http://www.epi.org/content.cfm/books_grading_places), author Peter Fisher finds that these indices are neither useful for companies in selecting sites nor for state policymakers in gauging economic competitiveness.