This paper is a preliminary assessment of compliance of Texas 4A and 4B economic development corporations against the Development Corporation Act of 1979 . This research reviews scholarly literature to examine the definition, theories and process of economic development. This paper evaluates the economic development process at federal, state, and local government, focusing on local economic development to estimate compliance. A framework that links economic theory to practice of economic development is established through a review of related law. The practical focus of the research is on allowable and non-allowable projects undertaken by Texas 4A and 4B economic development corporations. Preliminary findings of a Texas 4A and 4B economic development corporations survey, suggest a level of non-compliance that merits further research and possible changes to the law to establish an oversight mechanism.
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