1 option
Spatial Misallocation: Evaluating Place-Based Policies Using a Natural Experiment in China / Binkai Chen, Ming Lu, Christopher Timmins, Kuanhu Xiang.
- Format:
- Book
- Author/Creator:
- Chen, Binkai.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w26148.
- NBER working paper series no. w26148
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- Spatial Misallocation
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2019.
- Summary:
- Using the mass closure of development zones in 2004 as a natural experiment, we examine the causal effect of development zones on firm level TFP in China. The difference-in-difference estimator shows that on average, loss of development zone policies results in 6.5% loss of firms' TFP. Locational heterogeneity is important. Within 500 kilometers from the three major seaports in China, closure of zones reduced firm-level TFP by 9.62%, whereas closure of zones farther away did not show significant effects. Market potential and local within-industry spillover effects can explain much of this locational heterogeneity. We conclude that China's strategy of using development zones as a place-based policy to encourage inland development may have led to spatial misallocation.
- Notes:
- Print version record
- August 2019.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.