State Economic Growth Should Top U.S. Average

Article excerpt

Economic growth for Oklahoma could be above the national average over the next decade, according to research published by the Federal Reserve Bank of Dallas.

The projected growth for Oklahoma was attributed to an attractive economic climate and an industrial base dominated by several high-growth industries, the November edition of The Southwest Economy said. The study was conducted for the Federal Reserve in Dallas by Stephen P.A. Brown, senior economist, and Lea Anderson, research analyst.

"Oklahoma's industrial base," Brown and, "has an above-average representation of several rapid-growth industries, most notably rubber and plastic products and non-electrical machinery. The presence of these high-growth industries suggests economic expansion over the next decade."

Oklahoma also has an attractive economic climate conducive to industrial growth, said the study, which covered Texas, New Mexico, Arizona and Louisiana in addition to Oklahoma.

"Over the next decade," the study said, "four of the five states likely will see economic growth above the national average."

Louisiana is the only state in the Southwest projected to have growth below the national average during the decade.

"The composition of state and local government spending," Brown said, "relative freedom of growth-inhibiting special interest groups, the young age of the population and the mild weather give Oklahoma a favorable economic climate that's attractive to high-growth industries. Growing industries will move to the states with the most attractive economic climates."

Industry composition, said the study, should contribute to above-average growth in Arizona, New Mexico and Oklahoma. The industry composition in Texas should provide growth yield rates near the national average and below the national average for Louisiana.

In addition to industry composition, Brown and Anderson said, a second factor that will affect which industries show high growth during the next three to five years is the decline in the value of the dollar. …