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

  • Simon Alder
  • Lin Shao
  • Fabrizio Zilibotti

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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File URL: http://degit.sam.sdu.dk/papers/degit_17/C017_061.pdf
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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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