IDEAS home Printed from https://ideas.repec.org/p/oxf/wpaper/893.html
   My bibliography  Save this paper

Place-Based Policies: principles and developing country applications

Author

Listed:
  • Anthony J. Venables
  • Gilles Duranton

Abstract

Many development policies, such as placement of infrastructure or local economic development schemes, are “place-based.†Such policies are generally intended to stimulate private sector investment and economic growth in the treated place, and as such they are difficult to appraise and evaluate. This paper sets the rationale for place-based policies and a framework for analyzing their effects and assessing their social value. It then reviews the literature on place-based policies in the contexts of special economic zones, transport policy, lagging regions, and local economic development policies.

Suggested Citation

  • Anthony J. Venables & Gilles Duranton, 2019. "Place-Based Policies: principles and developing country applications," Economics Series Working Papers 893, University of Oxford, Department of Economics.
    • Handle: RePEc:oxf:wpaper:893
    as

    Download full text from publisher

    File URL: https://ora.ox.ac.uk/objects/uuid:8f3775cc-6e0a-4b34-acf4-856a73aee01d
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
    2. Redding, Stephen J. & Turner, Matthew A., 2015. "Transportation Costs and the Spatial Organization of Economic Activity," 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 1339-1398, Elsevier.
    3. Kiminori Matsuyama, 1991. "Increasing Returns, Industrialization, and Indeterminacy of Equilibrium," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 617-650.
    4. Nicholas Bloom & Benn Eifert & Aprajit Mahajan & David McKenzie & John Roberts, 2013. "Does Management Matter? Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(1), pages 1-51.
    5. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," 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 247-348, Elsevier.
    6. 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.
    7. Pierre Philippe Combes & Gilles Duranton & Henry G. Overman, 2005. "Agglomeration and the adjustment of the spatial economy§," Papers in Regional Science, Wiley Blackwell, vol. 84(3), pages 311-349, August.
    8. Evert Meijers & Martijn Burger & Gilles Duranton, 2016. "Determinants of city growth in Colombia," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 101-131, March.
    9. repec:oup:qjecon:v:129:y:2013:i:1:p:275-331 is not listed on IDEAS
    10. Chauvin, Juan Pablo & Glaeser, Edward & Ma, Yueran & Tobio, Kristina, 2017. "What is different about urbanization in rich and poor countries? Cities in Brazil, China, India and the United States," Journal of Urban Economics, Elsevier, vol. 98(C), pages 17-49.
    11. Kaivan Munshi & Mark Rosenzweig, 2016. "Networks and Misallocation: Insurance, Migration, and the Rural-Urban Wage Gap," American Economic Review, American Economic Association, vol. 106(1), pages 46-98, January.
    12. R. G. Lipsey & Kelvin Lancaster, 1956. "The General Theory of Second Best," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 24(1), pages 11-32.
    13. Paul Krugman, 1991. "History versus Expectations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 651-667.
    14. Enrico Moretti, 2014. "Local Economic Development, Agglomeration Economies, and the Big Push: 100 Years of Evidence from the Tennessee Valley Authority," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(1), pages 275-331.
    15. David McKenzie & Christopher Woodruff, 2014. "What Are We Learning from Business Training and Entrepreneurship Evaluations around the Developing World?," The World Bank Research Observer, World Bank, vol. 29(1), pages 48-82.
    16. repec:oup:qjecon:v:129:y:2014:i:2:p:939-993. is not listed on IDEAS
    17. Thomas Farole, 2011. "Special Economic Zones in Africa : Comparing Performance and Learning from Global Experience," World Bank Publications - Books, The World Bank Group, number 2268, December.
    18. Claudia N. Berg & Uwe Deichmann & Yishen Liu & Harris Selod, 2017. "Transport Policies and Development," Journal of Development Studies, Taylor & Francis Journals, vol. 53(4), pages 465-480, April.
    19. Gilles Duranton & J. V. Henderson & William C. Strange (ed.), 2015. "Handbook of Regional and Urban Economics," Handbook of Regional and Urban Economics, Elsevier, edition 1, volume 5, number 5.
    20. Douglas Gollin & David Lagakos & Michael E. Waugh, 2014. "The Agricultural Productivity Gap," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(2), pages 939-993.
    21. David Neumark & Helen Simpson, 2015. "Do place-based policies matter?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    22. Vivien Foster & Cecilia Briceno-Garmendia, 2010. "Africa's Infrastructure : A Time for Transformation [Infrastructures africaines]," World Bank Publications - Books, The World Bank Group, number 2692, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hornok, Cecília & Raeskyesa, Dewa Gede Sidan, 2022. "Economic zones and local income inequality: Evidence from Indonesia," Kiel Working Papers 2225, Kiel Institute for the World Economy (IfW Kiel).
    2. Augusto Cerqua & Guido Pellegrini, 2023. "I will survive! The impact of place-based policies when public transfers fade out," Regional Studies, Taylor & Francis Journals, vol. 57(8), pages 1605-1618, August.
    3. Rogerson Christian M., 2020. "Using Municipal Tourism Assets for Leveraging Local Economic Development in South Africa," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 48(48), pages 47-63, June.
    4. Rogerson Christian M. & Rogerson Jayne M., 2020. "Municipal caravan parks in South Africa: geography, management and planning," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 49(49), pages 109-124, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Venables, Anthony & Duranton, Gilles, 2018. "Place-Based Policies for Development," CEPR Discussion Papers 12889, C.E.P.R. Discussion Papers.
    2. Stephan Heblich & Stephen J Redding & Daniel M Sturm, 2020. "The Making of the Modern Metropolis: Evidence from London," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(4), pages 2059-2133.
    3. Castillo, Victoria & Figal Garone, Lucas & Maffioli, Alessandro & Salazar, Lina, 2017. "The causal effects of regional industrial policies on employment: A synthetic control approach," Regional Science and Urban Economics, Elsevier, vol. 67(C), pages 25-41.
    4. Anthony J Venables, 2020. "Why some places are left behind: urban adjustment to trade and policy shocks," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 36(3), pages 604-620.
    5. Bosker, Maarten & Park, Jane & Roberts, Mark, 2021. "Definition matters. Metropolitan areas and agglomeration economies in a large-developing country," Journal of Urban Economics, Elsevier, vol. 125(C).
    6. Redding, Stephen, 2021. "Suburbanization in the United States 1970-2010," CEPR Discussion Papers 16174, C.E.P.R. Discussion Papers.
    7. Gilles Duranton & William R. Kerr, 2015. "The Logic of Agglomeration," NBER Working Papers 21452, National Bureau of Economic Research, Inc.
    8. J. Vernon Henderson & Matthew A. Turner, 2020. "Urbanization in the Developing World: Too Early or Too Slow?," Journal of Economic Perspectives, American Economic Association, vol. 34(3), pages 150-173, Summer.
    9. Samuel Bazzi & Amalavoyal V. Chari & Shanthi Nataraj & Alexander D. Rothenberg, 2017. "Identifying Productivity Spillovers Using the Structure of Production Networks," Working Papers WR-1182, RAND Corporation.
    10. Rémi Jedwab & Adam Storeygard, 2022. "The Average and Heterogeneous Effects of Transportation Investments: Evidence from Sub-Saharan Africa 1960–2010," Journal of the European Economic Association, European Economic Association, vol. 20(1), pages 1-38.
    11. Stephen J. Redding, 2022. "Suburbanization in the USA, 1970–2010," Economica, London School of Economics and Political Science, vol. 89(S1), pages 110-136, June.
    12. Sarah Armitage & Noël Bakhtian & Adam B. Jaffe, 2023. "Innovation Market Failures and the Design of New Climate Policy Instruments," NBER Chapters, in: Environmental and Energy Policy and the Economy, volume 5, pages 4-48, National Bureau of Economic Research, Inc.
    13. Weinstein, Russell, 2018. "Dynamic responses to labor demand shocks: Evidence from the financial industry in Delaware," Journal of Urban Economics, Elsevier, vol. 106(C), pages 27-45.
    14. Ando, Michihito, 2015. "Dreams of urbanization: Quantitative case studies on the local impacts of nuclear power facilities using the synthetic control method," Journal of Urban Economics, Elsevier, vol. 85(C), pages 68-85.
    15. Benjamin Goldman & Thomas H. Klier & Thomas Walstrum, 2016. "Evidence on the Within-Industry Agglomeration of R&D, Production, and Administrative Occupations," Working Paper Series WP-2016-20, Federal Reserve Bank of Chicago.
    16. Jedwab, Remi & Loungani, Prakash & Yezer, Anthony, 2021. "Comparing cities in developed and developing countries: Population, land area, building height and crowding," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    17. Hasan, Rana & Jiang, Yi & Rafols, Radine Michelle, 2021. "Place-based preferential tax policy and industrial development: Evidence from India’s program on industrially backward districts," Journal of Development Economics, Elsevier, vol. 150(C).
    18. Hayato Kato & Toshihiro Okubo, 2022. "The Resilience of FDI to Natural Disasters Through Industrial Linkages," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(1), pages 177-225, May.
    19. Stephen J. Redding, 2020. "Trade and Geography," NBER Working Papers 27821, National Bureau of Economic Research, Inc.
    20. Holl, Adelheid, 2016. "Highways and productivity in manufacturing firms," Journal of Urban Economics, Elsevier, vol. 93(C), pages 131-151.

    More about this item

    Keywords

    Place-based policies; spatial; economic corridors; lagging regions;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oxf:wpaper:893. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anne Pouliquen (email available below). General contact details of provider: https://edirc.repec.org/data/sfeixuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.