Abstract

Small towns throughout Ohio have faced economic struggles in the ladder half of the 19th century, with consumers shifting their business towards large shopping and retail centers. Some of these towns have experimented with Voluntary Business Associations to combat weak economic environments with a main goal to revitalize their area and stimulate the local economy. In this study I will explore whether Voluntary Business Associations are effective at promoting economic growth as they claim to do so. I use economic theories such as the Public Goods theory, Public Choice theory, Circular Flow diagrams, Aggregate Demand and Aggregate Supply model that theoretically back my hypothesis that VBAs are effective at promoting economic growth. I additionally explore past literature to further understand how these organizations operate before empirically testing my hypothesis. I use Census data and IRS Tax Exempt Organization data to test Unemployment rate and VBA presence in every zip code through Ohio between 2021-2023 and adding multiple economic and demographic control variables. My use of the OLS regression with my variables reveals interesting findings. My results indicate that VBAs are associated with an increase in unemployment, while a sub-group of zip codes with Main Street organizations were associated with a decrease in unemployment, aligned with my hypothesis. These results may be skewed by selection bias because of systematic differences present in each community, and no pre-existing database for VBAs. Further research is needed to bypass the limitations in this study for a better understanding of how these organizations affect our communities.

Advisor

Long, Melanie

Department

Economics

Disciplines

Econometrics | Growth and Development | Public Economics

Keywords

VBA, voluntary business associations

Publication Date

2026

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

Download

Share

COinS
 

© Copyright 2026 Nathan E. Krieg