PORTLAND (AP) – Maine is becoming a cheaper place to do business, according to the Milken Institute, a California-based economic think tank.

West Virginia led the way in becoming less expensive, followed by Maine, Virginia, Arizona and North Carolina, according to the study based on an index that measures wages, taxes, electricity costs and real estate costs for industrial and office space.

Hawaii, New York, Massachusetts, California and Connecticut, in that order, were the most expensive places to do business for the second consecutive year. Massachusetts and California switched places from the year before.

The cheapest places to do business, in order, were South Dakota, North Dakota, Iowa, Montana and Idaho. The rankings were unchanged from 2004.

The Milken Institute is a non-partisan research organization that is funded through an endowment by financier Michael Milken and his brother, as well as by gifts and donations. It focuses on world market developments and economic trends.