"The New War Between the States" or Is the Industrial Policy of Connecticut Competitive with Those of Southern States?

Date of Submission


Document Type


Degree Name

Doctor of Science in Management Systems (Sc.D.)




Joseph A. Parker

LC Subject Headings

Industrial policy--Connecticut, Connecticut--Economic policy

Call No. at the Univ. of New Haven Library

AS 36 .N290 Mgmt. Syst. 1996 no.2


The expansions of the West German and Japanese economies in the 1970's and 1980's appeared to confirm the value of industrial policy as an economic development strategy. Application of the idea to the U.S. economy has been widely debated, but the subject remains moot. U.S. states, however, have mounted their own industrial (aka economic development) policies with most success occurring in the south. Northern states have lost manufacturing jobs to the south, and Connecticut's manufacturing community has undergone a significant depletion of jobs as factories relocate out of the state. To retain jobs and develop new ones Connecticut instituted its own industrial policy. State manufacturers, however, regard the policy as totally uncompetitive compared to the policies of southern states, and a significant number is actively planning to relocate to a southern state. Without a policy that competes with those of southern states Connecticut manufacturers will continue to exit the state as they fight to remain competitive in the expanding global economy. Southern states are benefiting significantly from this exodus while Connecticut's economy will continue to weaken unless it reforms its tax policies, supports its existing manufacturers, and innovates a global business policy to restructure the state's economy.