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Place-based Policies and Household Wealth in Africa

Author

Listed:
  • Abagna, Matthew Amalitinga
  • Hornok, Cecília
  • Mulyukova, Alina

Abstract

This paper provides novel evidence on the impact of a prominent place-based policy – Special Economic Zones (SEZs) – on the economic well-being of African households. Exploiting time variation in SEZ establishment on a dataset of repeated cross-sections of households in 10 African countries during 1990-2020, we show that households living near SEZs become wealthier relative to the national average after SEZ establishment. The effect accrues mostly within 10 km of SEZs, is not driven by selective migration, and is accompanied by improved access to household utilities, higher consumption of durable goods, increased educational attainment and a shift away from agricultural activities.

Suggested Citation

  • Abagna, Matthew Amalitinga & Hornok, Cecília & Mulyukova, Alina, 2025. "Place-based Policies and Household Wealth in Africa," Journal of Development Economics, Elsevier, vol. 176(C).
    • Handle: RePEc:eee:deveco:v:176:y:2025:i:c:s0304387825000331
    DOI: 10.1016/j.jdeveco.2025.103482
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    More about this item

    Keywords

    Special economic zone; Place-based policy; Household wealth; Africa;
    All these keywords.

    JEL classification:

    • F6 - International Economics - - Economic Impacts of Globalization
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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