Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/203364
Authors: 
Hasan, Rana
Jiang, Yi
Rafols, Radine Michelle
Year of Publication: 
2017
Series/Report no.: 
ADB Economics Working Paper Series 524
Abstract: 
The Government of India initiated a program in 1994 to promote manufacturing in districts designated as backward. The way the backward districts were identified enables us to employ a regression discontinuity design to evaluate the impacts of the program. We find that the program's 5-year tax exemption to manufacturers led to a significant increase in firm entry and employment in relatively better-off backward districts, particularly in light manufacturing industries. However, the program also resulted in negative spillover effects in districts wh ich were neighboring these backward districts and relatively weaker in economic activity. The findings emphasize that the spatial effects of place-based policies deserve greater attention from policy makers.
Subjects: 
backward districts
place-based policy
preferential tax
sharp regression discontinuity
spatial spillovers
JEL: 
H32
O14
R12
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/3.0/igo/
Document Type: 
Working Paper
Social Media Mentions:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.