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- Publisher
- American Economic Association
- Copyright
- Copyright © 2019 © American Economic Association
- ISSN
- 1945-7731
- DOI
- 10.1257/pol.20160272
- Publisher site
- See Article on Publisher Site
Abstract
AbstractCombining 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)
Journal
American Economic Journal: Economic Policy – American Economic Association
Published: Aug 1, 2019