Date of Award

Winter 2014

Document Type


Degree Name

Doctor of Philosophy (PhD)


Public Administration and Urban Policy

Committee Director

Berhanu Mengistu

Committee Member

Stephen B. Gordon

Committee Member

David Selover

Committee Member

Clifford McCue


This research examined the impact of South Carolina's in-state preference policies on the economy of the state. To achieve this purpose, the research sought to answer the question: what are the impacts of implementing the in-state procurement preference policies on the economy of the state of South Carolina? The question was answered by using seven economic indicators: jobs, personal income, real disposable income, output (sales), Gross State Product (GSP), value added and state's population. The data related to the in-state preference policies were collected from the South Carolina Procurement Services Office. The data was then analyzed using the Regional Economic Model Policy Insight (REMI PI+) for economic-forecasting and policy-analysis.

The results revealed the existence of quantitative differences between the baseline, which represents the values of the economic indicators without implementing the preference policies, and the alternative forecast, which represents the values of the economic indicators when implementing the policies. Specifically, the results showed that implementing in-state preference policies presented economic benefits to the state and its communities in the form of additional jobs, income, GSP, value added, population and sales. From 2010 until 2017, the total economic impact of implementing preference policies generated $17 million in total output, 135 total job-years, $10.22 million in GSP, $10.27 million in value added, $7.52 in income and $5.14 million in real disposable personal income. The impact on the wholesale trade industry was over $5 million in total industry output and approximately 27 jobs. The manufacturing sector had a total impact of over $4 million in total industry output and approximately 17 jobs. The impact on the construction industry was approximately $3 million in total industry output and approximately 30 jobs. Over 100 people were predicted to relocate to the state within the next 8 years. Although the values of the economic indicators are very small compared to the size of the state economy, they outweighed the direct cost of preferences. The direct cost of preferences represents the extra dollars that government pays when they award the contracts based on preferences. Overall, implementing the in-state preference policies contributed to South Carolina's economy. However, further research is warranted to account for the total costs of implementing the preference policies.


In Copyright. URI: This Item is protected by copyright and/or related rights. You are free to use this Item in any way that is permitted by the copyright and related rights legislation that applies to your use. For other uses you need to obtain permission from the rights-holder(s).