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An unintended consequence of place-based policies: A fall in informality

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  • Abeberese, Ama Baafra
  • Chaurey, Ritam

Abstract

We show that place-based policies can lead to a decline in the number of firms in the targeted areas. While the number of formal firms rises, the number of informal firms falls leading to an overall decline in the number of firms.

Suggested Citation

  • Abeberese, Ama Baafra & Chaurey, Ritam, 2019. "An unintended consequence of place-based policies: A fall in informality," Economics Letters, Elsevier, vol. 176(C), pages 23-27.
    • Handle: RePEc:eee:ecolet:v:176:y:2019:i:c:p:23-27
    DOI: 10.1016/j.econlet.2018.12.004
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    References listed on IDEAS

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    1. Neumark, David & Simpson, Helen, 2015. "Place-Based Policies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1197-1287, Elsevier.
    2. Gabriel Ulyssea, 2018. "Firms, Informality, and Development: Theory and Evidence from Brazil," American Economic Review, American Economic Association, vol. 108(8), pages 2015-2047, August.
    3. David Neumark & Helen Simpson, 2015. "Do place-based policies matter?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    4. Chaurey, Ritam, 2017. "Location-based tax incentives: Evidence from India," Journal of Public Economics, Elsevier, vol. 156(C), pages 101-120.
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    Cited by:

    1. Blakeslee,David & Chaurey,Ritam & Fishman,Ram & Malik,Samreen, 2021. "Land Rezoning and Structural Transformation in Rural India : Evidence from the Industrial Areas Program," Policy Research Working Paper Series 9541, The World Bank.
    2. Tien Manh Vu & Hiroyuki Yamada, 2023. "Impacts of enterprise zones on local households in Vietnam," Pacific Economic Review, Wiley Blackwell, vol. 28(5), pages 593-612, December.
    3. Li,Yue - ETICI & Sinha Roy,Sutirtha, 2020. "The Employment Effect of Place-Based Policies : Evidence from India," Policy Research Working Paper Series 9477, The World Bank.

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