Arbeitspapier
Place-Based Policies and Agglomeration Economies: Firm-Level Evidence from Special Economic Zones in India
This paper exploits time and geographic variation in the adoption of Special Economic Zones in India to assess the direct and spillover effects of the program. We combine geocoded firm-level data and geocoded SEZs using a concentric ring approach, thus creating a novel dataset of firms with their assigned SEZ status. To overcome the selection bias we employ inverse probability weighting with time-varying covariates in a difference-in-differences frame-work. Our analysis yields that conditional on controlling for initial selection, SEZs induced no further productivity gains for within SEZ firms, on average. This is predominantly driven by relatively less productive firms, whereas more productive firms experienced significant productivity gains. However, SEZs created negative externalities for firms in the vicinity which attenuate with distance. Neighbouring domestic firms, large firms, manufacturing firms and non-importer firms are the main losers of the program. Evidence points at the diversion of inputs from non-SEZ to SEZ-firms as a potential mechanism.
- Language
-
Englisch
- Bibliographic citation
-
Series: IZA Discussion Papers ; No. 15123
- Classification
-
Wirtschaft
Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
Industrial Policy
Socialist Systems and Transitional Economies: Urban, Rural, and Regional Economics
General Regional Economics (includes Regional Data)
Regional Development Planning and Policy
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
International Investment; Long-term Capital Movements
Economic Impacts of Globalization: General
- Subject
-
firm performance
agglomerations
Special Economic Zones
India
- Event
-
Geistige Schöpfung
- (who)
-
Görg, Holger
Mulyukova, Alina
- Event
-
Veröffentlichung
- (who)
-
Institute of Labor Economics (IZA)
- (where)
-
Bonn
- (when)
-
2022
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Görg, Holger
- Mulyukova, Alina
- Institute of Labor Economics (IZA)
Time of origin
- 2022
Other Objects (12)
Place-based policies and agglomeration economies: Firm-level evidence from special economic zones in India
Outsourcing, offshoring and innovation: Evidence from firmlevel data for emerging economies
Multinationals' location choice, agglomeration economies and public incentives
Multinationals ' location choice, agglomeration economies and public incentives
Place-based policies and firm performance : Evidence from Special Economic Zones in India
Corruption and productivity firm-level evidence from the BEEPS survey
The productivity spillover potential of foreign-owned firms: firm-level evidence for Hungary
Place-based policies and agglomeration economies : Firm-level evidence from special economic zones in India
Ausländische Direktinvestitionen in Deutschland – die große Angst vor China
Fancy a stay at the Hotel California? Foreign direct investment, taxation and firing costs
Fancy a stay at the Hotel California? Foreign direct investment, taxation and exit costs
US-Subventionspaket IRA: Bye bye, Europe?
Place-based policies and agglomeration economies: Firm-level evidence from special economic zones in India
Outsourcing, offshoring and innovation: Evidence from firmlevel data for emerging economies
Multinationals' location choice, agglomeration economies and public incentives
Multinationals ' location choice, agglomeration economies and public incentives
Place-based policies and firm performance : Evidence from Special Economic Zones in India
Corruption and productivity firm-level evidence from the BEEPS survey
The productivity spillover potential of foreign-owned firms: firm-level evidence for Hungary
Place-based policies and agglomeration economies : Firm-level evidence from special economic zones in India
Ausländische Direktinvestitionen in Deutschland – die große Angst vor China
Fancy a stay at the Hotel California? Foreign direct investment, taxation and firing costs
Fancy a stay at the Hotel California? Foreign direct investment, taxation and exit costs
US-Subventionspaket IRA: Bye bye, Europe?
Place-based policies and agglomeration economies: Firm-level evidence from special economic zones in India
Outsourcing, offshoring and innovation: Evidence from firmlevel data for emerging economies
Multinationals' location choice, agglomeration economies and public incentives
Multinationals ' location choice, agglomeration economies and public incentives
Place-based policies and firm performance : Evidence from Special Economic Zones in India
Corruption and productivity firm-level evidence from the BEEPS survey
The productivity spillover potential of foreign-owned firms: firm-level evidence for Hungary
Place-based policies and agglomeration economies : Firm-level evidence from special economic zones in India
Ausländische Direktinvestitionen in Deutschland – die große Angst vor China
Fancy a stay at the Hotel California? Foreign direct investment, taxation and firing costs
Fancy a stay at the Hotel California? Foreign direct investment, taxation and exit costs