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Business Climate Rankings and the California Economy
Jed Kolko, David Neumark, and Marisol Cuellar Mejia

April 2011

California fares poorly on many national ranking of business climate, yet over the past 30 years the state’s economy has grown at roughly the same rate as the national average. This report examines this California puzzle, finding that factors beyond policy matter more for economic growth. California’s advantages – particularly its favorable climate and industry mix – offset its unfavorable rankings.

This research was supported with funding from the David A. Coulter Family Foundation and the Donald Bren Foundation.