Buckeye Reporter

Ohio's economic competitiveness has significantly improved over the past five years, according to a study unveiled by business leaders and economists. The state's ranking jumped from 24th in 2018 to 13th in 2023 among the fifty states. Economists Dr. Timothy Nash of Northwood University and Dr. Jing Li of Miami University led the study, which also highlighted areas needing attention for future growth.

Dr. Nash attributed Ohio's improved standing to several factors, including enhancements in the tax structure, reduced state debt per capita, better perceptions of Ohio's business climate among national leaders, improved auto insurance rates, and tax rate reductions. He stated, "This study shows Ohio’s competitive standing jumped from 24th in 2018 to 13th in 2023 among all fifty states."

The study was supported by additional data points known as the "Big Mac" and "U-Haul" factors. Ohio consumers pay $4.03 for a Big Mac, making it the seventh lowest price nationwide. Meanwhile, Ohio ranked 24th in net U-Haul trips into the state.

Dr. Nash concluded that Ohio has made substantial economic progress recently, providing hope for continued growth: “Bottom line, Ohio has made tremendous economic progress over the last few years, and these gains give hope for continued economic growth.”

Local cities such as Columbus, Cleveland, and Cincinnati were ranked among Great Lakes cities regarding economic growth between 2020-2021. These cities ranked above Milwaukee but below Indianapolis and Detroit.

However, several issues were identified that could hinder future competitiveness. Ohio ranks only 37th out of 50 states for tax standing due to low rankings in personal income taxes (41st), corporate taxes (39th), and sales tax (36th). Additionally, Ohio's Gross State Product grew only 116% compared to the national average of 160% since 1998. Job growth was slow at 4.8%, while U.S. jobs grew by 23% from 2000 to 2021. Entrepreneurial activity was also weak with a score of -1.37 against a national figure of 0.6 according to the Kauffman Early-Stage Entrepreneurship Index.

Senator George Lang commented on the findings: “The results here speak for themselves. Ohioans across the state are benefiting from lower taxes, higher wages, and a state that is poised to become a national leader in commerce."

The study was conducted under Ohio’s “Big Six” coalition of business advocates: Ohio Business Roundtable, Ohio Chamber of Commerce, Ohio Council of Retail Merchants, Ohio Farm Bureau, Ohio Manufacturers’ Association and NFIB-OH.

Business leaders expressed their approval collectively: “We applaud the many Statehouse leaders who have made it a priority to improve Ohio’s economic climate and look forward to continued efforts to improve Ohio’s economic health."