Performance Measurement in Local Economic Development

Despite the trend toward accountability in the public sector, little inferential research exists on the use of accountability tools such as performance measurement. This study identifies factors that affect performance measurement in local economic development and compares the impact of structural determinants such as demographic, socioeconomic, and competitive factors to local community choices such as organizational, political, and community forces. Organizational characteristics of the economic development agency had the greatest impact, though socioeconomic and competitive forces also affected performance measurement. Overall, the findings indicate that in municipal policy making, both structural constraints and local choices matter, but local choices matter more.