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The Effect of Economic Reform and Industrial Policy in a Panel of Chinese Cities

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  • Simon Alder
  • Lin Shao
  • Fabrizio Zilibotti

Abstract

We use the establishment of Special Economic Zones in China to estimate the effect of economic reforms on GDP. A panel of 270 Chinese cities from 1988 to 2010 allows us to exploit the variation in the establishment of zones across time and space. The results from our baseline difference-in-difference specification suggest that the establishment of a major zone led to an increase in the level of GDP by about 9%. This result is similar in a sub-sample of inland provinces, where the selection of cities in which zones were established was more transparent. We also use a set of alternative identification strategies and find mostly similar effects.

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Bibliographic Info

Paper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c017_061.

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Length: 45 pages
Date of creation: Sep 2012
Date of revision:
Handle: RePEc:deg:conpap:c017_061

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Keywords: China; Economic Reform; Industrial Policy; Development;

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References

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Cited by:
  1. Wang, Jin, 2013. "The economic impact of Special Economic Zones: Evidence from Chinese municipalities," Journal of Development Economics, Elsevier, vol. 101(C), pages 133-147.

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