Using Public‐Private Partnerships to Develop Local Economies

Abstract

Throughout the 1980s, states experimented with enterprise zone programs aimed at alleviating fiscal distress in urban areas, by promoting the growth of private business. Together, public and private sectors supposedly function as partners to improve employment opportunities, especially for disadvantaged residents in designated zone areas. Today, however, questions continue to be raised regarding the impact of enterprise zone programs on financially depressed areas. This research provides a detailed investigation of the economic activities undertaken in the Kansas City and Cuba, Missouri enterprise zones to determine if a comparative employment advantage exists, and whether zone businesses fulfill their responsibilities with respect to hiring and training disadvantaged workers. The types of businesses attracted to the Kansas City and Cuba enterprise zones are identified to determine if either community has engaged in smokestack chasing. Finally, an urban‐rural comparison is offered to help illuminate various factors affecting enterprise zone functions, including job creation capacity, in different socioeconomic settings.