ABSTRACT
Economic development is a policy priority for most local, regional, and central governments. Economic development is a means to reduce unemployment, increase tax bases, leverage other resources from the community, and curry public favor and support. When economic development slows, stagnates, or declines, it has an adverse effect on the community, and political and economic leaders are held responsible. Therefore, the competition for new and expanding businesses can be intense and economic development programs may include a broad range of incentives to lure firms from other communities and to cultivate new firms locally. Financing economic development is a crucial concern and one that raises fundamental issues concerning who should pay for government programs, and how much should and can be invested.
