March 22nd, 2015
from the Dallas Fed
In the economic development arena, incentives for high-profile corporate relocations signal that a locality is open for business. They draw attention to an area's commercial and economic opportunities with the goal of expanding its depth and breadth of operations. Texas' expansive economy has included its share of such relocations, notably Toyota Motor North America's 4,000-employee 2017 move from Torrance, Calif., to Plano and Exxon Mobil Corp.'s more than 11,000-worker consolidation in 2016 to The Woodlands, north of Houston.
Among government leaders, the implicit expectation is that benefits - generally well-paying jobs with the target company and its suppliers and contractors as well as business-friendly image burnishing - exceed the costs of providing the incentives.