Faculty Research at Morehead State University


State Constitutions, Industrial Recruitment Incentives, and Japanese Automobile Investment in Mid-America

Document Type


Publication Date

Spring 1990


State governments have become increasingly involved in the new international economic order. One aspect of this participation has been the intense competition between states to recruit foreign industry, including the major Japanese automobile manufacturing corporations: Honda, Nissan, Mazda, Toyota, Fuji, Isuzu, and Mitsubishi. Six mid American states - Michigan, Ohio, Indiana, Illinois, Kentucky, and Tennessee - have been winners in this industrial recruitment competition, a major feature of which has been the financial incentives these states have offered and the Japanese automobile firms have accepted: land purchases and improvements, highway and railroad extensions, employee recruitment and training, and tax exemptions and abatements.