Place-Based Policies, Creation, and Agglomeration Economies: Evidence from China’s Economic Zone Program
By Yi Lu, Jin Wang, Lianming Zhu. American Economic Journal: Economic Policy, 2019
417 citations recorded by the source corpus.
Combining rich firm and administrative data, this paper examines the incidence and effectiveness of a prominent place-based policy in China: special economic zones. Establishing zones is found to have had a positive effect on capital investment, employment, output, productivity, and wages, and to have increased the number of firms in the designated areas. Net entry plays a larger role in generating those effects than incumbents. The special zone program’s net benefits over three years are estimated to amount to about US$15.62 billion. Capital-intensive industries benefit more than labor-intensive ones from the zone programs. (JEL O16, O18, O25, P25, R23, R32, R58)
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/23e6dadff0a5528be1ea2bc49f7fa7378c655bd8
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In Economics and Econometrics
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Citations in the corpus
- Some Causal Effects of an Industrial Policy (2019, methodology): “45 See online Appendix Table A17 (a generalization of column 2 in Table 11, panel B). 46 We use the administrative reports of the grants awarded averaging £164 million and add to this the estimations from the National Audit Office (2003) that there were 10 percent spent in government administration ”