Effects of business improvement districts on firm performance, place attractiveness, and urban safety

Arbeitspapier

Business improvement districts (BIDs) have emerged as possible solutions for the revitalization of urban areas characterized by economic decline. Using a difference-in differences model, we investigate the effects of a voluntary Swedish BID programme in five cities on firm performance, urban safety, and place attractiveness – both within and outside the BID. We find that the BID programme increased labour productivity for incumbent firms within the BID by 7.62%, mainly through an increase in revenues. However, the positive effect of the BID programme on firm performance is largely transitory, decreasing sharply during the third year and then becoming insignificant. We find no statistically significant impacts on firm performance outside the geographical boundaries of the BIDs. The results also suggest that fewer crimes were committed in the BIDs, as the estimates for all years are negative, though they are significant only for the fourth year after BID implementation. Finally, we detect no statistically significant effects of the BID programme on property values either within or outside the designated BIDs.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: HFI Working Paper ; No. 24

Classification and Topics

• Classification: Wirtschaft ; Publicly Provided Goods: Mixed Markets ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Firm Performance: Size, Diversification, and Scope ; Regional Economic Activity: Growth, Development, Environmental Issues, and Changes ; Size and Spatial Distributions of Regional Economic Activity
• Subject: Business improvement district ; public–private partnerships ; firm performance ; labour productivity ; property values ; crime ; difference-in-differences

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Daunfeldt, Sven-Olov ; Mihaescu, Oana ; Rudholm, Niklas
• Event: Veröffentlichung
• (who): Institute of Retail Economics (HFI)
• (where): Stockholm
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/246778
• Last update: 10.03.2025, 11:45 AM CET