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A Micro-Level Approach to the Analysis of the Displacement Effects of Regional Incentive Policy: The Case of Finland

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Hannu Tervo

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Abstract

TERVO H. (1989) A micro-level approach to the analysis of the displacement effects of regional incentive policy: the case of Finland, Reg. Studies 23, 511--521. This paper analyses the impact of regional incentive policy from the point of view of efficiency. Contrary to usual practice, a micro-level approach is used. Four possibilities for displacement effects to arise are proposed: displacement may be either direct or indirect and simultaneously directed either at existing or 'potential’ production. The empirical results concerning the situation of Finland suggest that regional policy has been more than a zero-sum game between the assisted and non-assisted areas during the period 1975--81. TERVO H. (1989) Une micro-analyse des effets de déplacement de la politique d'incitations à finalité régionale: cas d'étude de la Finlande, Reg. Studies 23, 511--521. Cet article analyse les effets de la politique d'incitations à finalité régionale du point de vue de l'efficience. A l'encontre de la pratique reçue il s'agit d'une micro-analyse. On propose quatre raisons susceptibles d'expliquer les effets de déplacement éventuels: il se peut que le déplacement soil direct ou indirect et en même temps concerne la production actuelle ou potentielle. Les résultats empiriques pour la Finlande laissent supposer que la politique régionale a été plus qu'un jeu à somme nulle entre les zones classées et les zones non-classées sur la période de 1975 à 1981. TERVO H. (1989) Eine auf Mikroebene ansetzende Stellungnahme zur Analyse der Verschiebungswirkung regionaler Anreizpolitik: der Fall Finnlands, Reg. Studies 23, 511--521. Dieser Aufsatz analysiert die Auswirkung regionaler Anreizpolitik vom Standpunkt der Leistung aus. Im Gegensatz zum üblichen Verfahren wird eine auf Mikroebene ansetzende Stellungnahme benutzt. Es werden vier Möglichkeiten des Entstehens von Verschiebungsauswirkungen vorgeschlagen: Verschiebung kann entweder direkt oder indirekt sowie gleichzeitig auf bestehende oder potentiale Produktion gerichtet sein. Empirische Resultate, die die Situation Finnlands betreffen, legen es nahe, dass Regionalpolitik sich im Zeitrum 1975--1981 als mehr als ein blosses Spiel zwischen geförderten und nichtgeförderten Gebieten erwiesen hat, in dem Gewinne des einen Verlusten des andern entsprechen.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Regional Studies.

Volume (Year): 23 (1989)
Issue (Month): 6 (December)
Pages: 511-521
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Handle: RePEc:taf:regstd:v:23:y:1989:i:6:p:511-521

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Related research
Keywords: Regional incentive policy Efficiency Displacement effect Micro study Finland

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References listed on IDEAS
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  1. Bartels, Cornelis P. A. & Nicol, William R. & van Duijn, Jacob J., 1982. "Estimating the impact of regional policy : A review of applied research methods," Regional Science and Urban Economics, Elsevier, vol. 12(1), pages 3-41, February. [Downloadable!] (restricted)
  2. W.R. Nicol, 1982. "Estimating the effects of regional policy: A critique of the European experience," Regional Studies, Taylor and Francis Journals, vol. 16(3), pages 199-210, June. [Downloadable!] (restricted)
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