Incentive-based Ecomic Development

For my Economic Development Theory class, I reviewed and compared two case studies from North Carolina involving incentives for technology-based economic development. I reviewed the incentive packages from post-Keynesian, Economic Base, and Value of Place theoretical perspectives.

Skills used:

• Economic theory

• Comparative analysis

• Technical writing

The use of incentive-based economic development policies has become increasingly common in recent decades, but these policies are often incredibly controversial. The 2007 Google data center deal in Caldwell County, NC and the 2021 Apple campus agreement in Wake County, NC illustrate the complex nature of economic development incentives. This paper evaluates these cases through three regional economic development frameworks: post-Keynesian economic theory, Economic Base Theory, and the Value of Place perspective. By examining the theoretical justifications and criticisms of these incentive deals, this paper discusses whether they align with long-term economic sustainability or primarily serve corporate interests at the expense of broader community benefits.