Impact of Urban Free Zones (Zones Franches Urbaines: ZFUs on Paid Employment and Business Creation)
AbstractFrance set up 41 Zones Franches Urbaines (ZFUs) on January, 1st, 2004 to replace a less generous program named Zones de Redynamisation Urbaine (ZRUs). Businesses located in ZFUs enjoy a five-year exemption from employers' social contributions, corporate income tax, local business tax, and property tax. To assess the impact on employment and business creation, we compare ZFUs with a control group of ZRUs that did not change status. We find a positive impact of the shift to ZFU status on business and job creation. Two-thirds of the increase in gross flows of local business units is due to an influx of economic activities from areas not targeted by the measures (i.e., these are transfers, not outright business creation). The cost per job created or transferred to ZFUs seems high, but we lack evaluations of policies aimed at similar objectives with which we could compare the ZFU system.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Institut National de la Statistique et des Etudes Economiques in its journal Economie et Statistique.
Volume (Year): 415-416 (2009)
Issue (Month): (March)
Tax Exemption; Business Creation; Urban Policy; Matching; Evaluation;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
- R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - Government Policy; Regulatory Policy
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (D3E).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.