Joint Ventures, Economic Development Policy, and the Role of Local Governing Institutions

Abstract

The “rules of the game” embodied in municipal government institutions constrain as well as provide opportunities for local government officials to capture individual benefits related to policy action. Whether the projected benefits of cooperation are localized or community-wide are hypothesized to combine with the political incentives produced under different forms of government to influence the likelihood local officials will enter into an economic development joint venture with other local governments. Analysis pooling survey data from the same cities at two time points provides evidence that prior agreements influence future cooperative actions and that joint ventures are more likely when there are localized benefits combined with mayor—council government, or when broader benefits are pursued under manager—council form of government.