QUASI-GOVERNMENTAL INSTITUTIONS AS A FORM OF LOCAL BOUNDARY CHANGE: EXPLANATIONS FOR THE PROLIFERATION OF ECONOMIC DEVELOPMENT CORPORATIONS IN TEXAS by ProQuest

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									QUASI-GOVERNMENTAL INSTITUTIONS AS A
FORM OF LOCAL BOUNDARY CHANGE:
EXPLANATIONS FOR THE PROLIFERATION OF
ECONOMIC DEVELOPMENT CORPORATIONS IN
TEXAS.

NICHOLAS BAUROTH
North Dakota State University



                           ABSTRACT
         The United States has experienced a proliferation of quasi-
governmental institutions over the last three decades. The formation of
such institutions represents an important form of local boundary
change. Local boundaries determine service delivery, economic
development, and intergovernmental relationships. It remains unclear,
though, how the process of boundary change unfolds. Using U.S.
Census and Texas State Comptroller data, I examine the ability of four
explanations of boundary change to account for the use of economic
development corporations across Texas. I find that their creation is not
driven by economic need or the desire to circumvent institutional
constraints. Instead, local entrepreneurs and prior boundary change are
associated with new corporations.



                       INTRODUCTION

       A central goal of general-purpose governments in
the United States is to establish an environment that
encourages new investments by the business community.
This goal has led to the creation and proliferation of a
variety of quasi-governmental institutions over the last
three decades (Sagalyn 2007). Today, the number of
business improvement districts throughout the nation is
estimated at over 1,000 (Morcol and Zimmerman 2006),
every state has legislation promoting some form of tax
increment financing (Byrne 2006), and the numbers and
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