Study Finds Little Evidence That Firm-Specific Economic Development Subsidies Work, but That Doesn’t Mean They’re Unnecessary
One hundred dollar notes are seen in this photo illustration at a bank in Seoul January 9, 2013. Japan's drive to weaken the yen poses a threat to big South Korean exporters such as Hyundai Motor, but Koreans may benefit as the new president aims to shift policy away from supporting big exporting conglomerates. The yen's tumbling by some 10 percent to the dollar in the December quarter at a time when the won has been on the rise sent the shares of big exporters falling and raised concerns among the policymakers in Seoul. Picture taken January 9, 2013. To match Analysis KOREA-CURRENCY/ REUTERS/Lee Jae-Won (SOUTH KOREA - Tags: BUSINESS) - RTR3CGGO
We are stuck in a sort of arms race. Every year the pile of billions states and local communities offer for economic development subsidies gets bigger, as local leaders try to stand out from the pack, and none dare stop lest their community get left in the dust.
