Abstract
This paper examines knowledge spillover theories and municipal bond issuance impacts on establishment and employment growth. It is a regional study that focuses on counties that are located within metropolitan statistical areas that compete with the Sacramento, California metropolitan statistical area. Using industry specific business and municipal bond data for each county during the years, 2003 to 2012, the results show that competitive and localized intra-industry establishments significantly impact employment and establishment growth. The analysis also finds that municipal bond issues do not impact employment growth. Construction and administration, and waste management and remediation industries experience faster establishment growth rates in counties that issue more municipal bonds.