The Korea Local Administration Review

This research investigates factors influencing policy adoption of tax incentiveprograms related to economic development in Florida local governments interms of political market theory. By employing political market theory, thisresearch emphasizes local politics, fiscal and interest group factors.Furthermore, this study utilizes two analyses: 1) a logistic regression examineslocal contextual factors influencing the adoption of tax incentive programs, and2) an OLS model is conducted to investigate the effects of selected factors onthe adoption of a number of tax incentive programs among local governmentswhich have already adopted at least one tax incentive program. Statisticalfindings support the significant influence of political and interest group factorson tax incentive program adoption. More specifically, local governments thathave an appointed manager have a high probability of adopting the tax incentiveprogram, also the number of local business groups in local governments ispositively related to a greater number of tax incentive programs.
□ Keywords : Tax incentives, political market theory, local economic development