Are state and local economic incentives to attract new firms worthwhile? Mitsubishi Motors in Illinois provides in-depth analysis of the incentives offered to land Diamond-Star Motors, the plant's labor force, supplier organization, and its community impact to answer this question. The authors conclude with a benefit-cost analysis of the incentive package at the community and at the state level. Written in nontechnical language, the book is intended for planners and administrators in state and local government, economic and business development officers, and international corporate management, as well as economists and public policy analysts.Although much research has been compiled separately on the various issues surrounding the establishment of Japanese auto manufacturing plants in the United States, this work is unique for its direct surveys of workers, suppliers, members of the community, and city and state leaders involved in the negotiations. Data on the local housing impact are drawn from detailed examination of loan applications in the community during the major hiring period at the plant. While some results confirm previous work, the authors find many differences, particularly in the composition of the labor force and the effect of just-in-time production methods on supplier location. The book provides a comprehensive view of the community and regional impact of a Japanese auto manufacturing plant which can be used as a model for planning economic development strategies to attract new firms to states and communities. Written in nontechnical language, the book is intended for planners and administrators in state and local government, economic and business development officers, and international corporate management, as well as economists and public policy analysts.

MARGARET L. CHAPMAN is Professor of Economics at Illinois Wesleyan University, where she specializes in the methodology and public policy issues of economic development. In addition to her teaching and research, Chapman has served as a member of a select panel of advisers to the Illinois Department of Commerce and Community Affairs.ARUN P. ELHANCE is director, Program on International Peace and Security, at the Social Science Research Council in New York. Previously, he was Assistant Professor of Geography at the University of Illinois, and before that a consultant in economics to the World Bank. He has received numerous scholarships and awards, most recently from the U.S. Institute of Peace and the Johns Hopkins University School of Advanced International Studies.JOHN D. WENUM is Professor Emeritus of Political Science, recently retired from Illinois Wesleyan University where he served as head of the Department of Political Science and director of the Division of Social Science. Among his most recent publications are County Government: Guidelines for County Board Members (1991).