State and local governments grant tax credits and incentives to large corporations for choosing to setup shop in their cities. The lure of creating new jobs and boosting the local economy spells success for state and local government officials.
The worldwide marketplace for economic development incentives facilitates over $300 billion in transactions every year. However, these are not just free giveaways to a company. In exchange for an incentive package, a business is expected to create value for that community.