Who Benefits When Enterprise Zones Are Zoned-Out? The Case of the Ohio Enterprise Zone Program

In theory, enterprise zones target economically distressed areas. In practice, they do not. The dramatic expansion of the Ohio enterprise zone program to non-distressed areas allows us to examine three important theoretical and policy questions about enterprise zone usage and performance when enterprise zones are no longer targeted. First, if the state does not limit which municipalities can utilizes enterprise zones, which municipalities seek enterprise zone designation? Second, which enterprise zones generate the most new jobs and private investment? Third, where should Ohio designate its enterprise zones? We conclude with an analysis of the political dynamics and policy implications of expanding spatially targeted economic development policies to non-distressed areas. This study does not weigh in on whether the Ohio enterprise zone programs attracts investment and jobs. Instead, this research seeks to orient the discussion toward the question of who, or to be more accurate “where,” benefits.