Incentives and Economic Development

1
Incentives and Economic Development

• The Case of BMW in South Carolina

2
The BMW Case

• Located in Greer, South Carolina
• First full assembly plant outside Germany for BMW
• Manufactures the X5 and Z3

3
Development Incentives

• Total Economic Package offered to BMW was 130
  million, which included
• tax credits, tax abatements, job training
  allowances and infrastructure improvements

4
Four Approaches to Analyzing Incentives

• BMWs Economic Impact
• BMWs State and Local Fiscal Impacts
• BMWs Regional Competitiveness Effects
• BMWs Investment and Economic Development in
  South Carolina

5
Conclusion

• The BMW case has been a success when judged by
  the following criteria
• By 2001 BMW had invested 1.9 billion in direct
  investment in S.C.
• 2001 BMW had employed more than 4,500 workers
• Annual compensation reached 345 million in 2001