Nevada Leads U.S. in Luring Firms--Survey

RENO —  Nevada has led the nation in attracting new business in the last five years, according to a University of Nevada-Reno study that backs up claims made by some state officials.

An annual average of nearly 48 new companies for every 1,000 Nevadans was incorporated between 1980 and 1985. The study, conducted by UNR economist John Dobra, found an average of 13 new incorporations in California for every 1,000 residents.

Dobra said the study supports claims made by some officials that Nevada’s low taxes, wage rates and the state’s proximity to California have contributed to economic diversification in Nevada.

While Nevada was far ahead of other Western states in new incorporations, the West overall was ahead of the national average.

The relatively brisk business growth in Nevada was cited by Dobra in predicting that economic growth in the West would exceed the national average for the next five to 10 years.

However, a regional economist for First Interstate Bancorp of Los Angeles said Dobra’s predictions were overly optimistic. “There are a few states within that region that will outperform the nation in the next two years, but the region as a whole will not,” said Jeff Haas.