Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/130509
Authors: 
Koster, Hans
Cheng, Fang Fang
Gerritse, Michiel
van Oort, Frank
Year of Publication: 
2016
Series/Report no.: 
Tinbergen Institute Discussion Paper 16-021/VIII
Abstract: 
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.
Subjects: 
place-based policies
transitional economies
science parks
productivity
JEL: 
H2
R3
R5
Document Type: 
Working Paper

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