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July 27, 2009

A good ranking for North Carolina

It seems like every week we have another ranking of some kind released, and now here comes one for the economic performance of states. With the recession, this is very timely. What factors determined this ranking, and how did North Carolina do?

Dr. Mike Walden, North Carolina Cooperative Extension economist in the College of Agriculture and Life Sciences at N.C. State University, responds:

"Well, this is called the State's Economic Competitiveness Index, and it's from the American Legislative Exchange Council. So this is very important. This is an important group, and businesses will look at this in terms, for example, of deciding whether North Carolina is a good place to locate. And what this ranking does is specifically look at the attractiveness of states for business location. It considers factors like taxes, labor costs and the relative size of government. Now, for 2009, North Carolina ranked 23rd among the 50 states. So we were in the upper echelon. We received high marks for our labor costs, our low public debt and our relatively low property and sales taxes. However, working against us in the ranking was our relatively high income tax rate and worker's compensation costs. This ranking, I should say, is consistent with many others that do put North Carolina in the top 25 of most states on being economically attractive."

Posted by Dave at July 27, 2009 08:00 AM