Publication

This paper examines the economic transformation which North Carolina underwent after the decline of manufacturing and discusses the possible lessons for other regions of the US. Drawing from the study of adjustment policies in three regions of North Carolina, the author underscores the important role that state governments play in accelerating economic adjustment and mitigating the negative impact of change. State policies like support for public education, the development and expansion of the state university and community college system, investment in roads and other infrastructure, and generally prudent fiscal management provide the foundation. Based on this, the paper stresses the importance of local assets and initiatives.