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Place-based policies, structural change and female labor: Evidence from India’s Special Economic Zones

Author

Listed:
  • Gallé, Johannes
  • Overbeck, Daniel
  • Riedel, Nadine
  • Seidel, Tobias

Abstract

This paper quantifies the local economic impact of special economic zones (SEZs) established in India between 2005 and 2013. Using a novel dataset that combines census information on the universe of Indian firms with geo-referenced data on SEZs, we find that the establishment of SEZs increased local manufacturing and service employment, with positive spillovers up to 10 km from the SEZ area. The analysis shows that the gains in manufacturing and service employment were accompanied by a decline in agricultural labor, especially for women, suggesting that the policy contributed to structural change. In further analysis, we document that significant local employment effects occur across different types of SEZs: privately and publicly run zones, and SEZs with different industry designations.

Suggested Citation

  • Gallé, Johannes & Overbeck, Daniel & Riedel, Nadine & Seidel, Tobias, 2024. "Place-based policies, structural change and female labor: Evidence from India’s Special Economic Zones," Journal of Public Economics, Elsevier, vol. 240(C).
    • Handle: RePEc:eee:pubeco:v:240:y:2024:i:c:s0047272724001956
    DOI: 10.1016/j.jpubeco.2024.105259
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    More about this item

    Keywords

    Economic development; Female labor; Place-based policy; Spillovers; Structural change; Special Economic Zones;
    All these keywords.

    JEL classification:

    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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