NDLI: Place-Based Policies, Firm Productivity and Displacement Effects: Evidence from Shenzhen, China

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Place-Based Policies, Firm Productivity and Displacement Effects: Evidence from Shenzhen, China

Content Provider	Scilit
Author	Koster, Hans R. A. Cheng, Fang Fang Gerritse, Michiel Oort, Frank G. Van
Copyright Year	2016
Description	Journal: SSRN Electronic Journal We analyse the economic impacts of place-based policies that aim to enhance economic development by stimulating growth and productivity of firms in designated areas. We use unique panel data from China with information on manufacturing firms’ production factors, productivity and location, and we exploit temporal and spatial variation in place-based interventions due to the opening of science parks in the metropolitan area of Shenzhen. The identification strategy enables us to address the issues that (i) science parks are located in favourable locations and that (ii) high-productivity firms sort themselves in science parks. We find that productivity is approximately 15-25 per cent higher due to the policies. The results also show that local wages have increased in science parks. Weaker evidence suggests that displacement effects are sizeable.
Related Links	https://repub.eur.nl/pub/112277/Repub_112277_O-A.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=2757593
ISSN	10914358
e-ISSN	15565068
DOI	10.2139/ssrn.2757593
Journal	SSRN Electronic Journal
Language	English
Publisher	Elsevier BV
Publisher Date	2016-03-31
Access Restriction	Open
Subject Keyword	Journal: SSRN Electronic Journal Development Studies Place-based Policies Transitional Economies
Content Type	Text
Resource Type	Article
Subject	Public Health, Environmental and Occupational Health Psychiatry and Mental Health

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