Working Paper: CEPR ID: DP12889
Authors: Gilles Duranton; Anthony J. Venables
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 out a framework for analyzing the effects of such policies and assessing their social value. It then reviews the literature on place-based policies in the contexts of transport improvements, economic corridors, special economic zones, lagging regions, and urban policies.
Keywords: place based policies; spatial economic corridors; lagging regions; urban
JEL Codes: O10; O18; R10; R11; R13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| PBPs (L65) | economic activity (E20) |
| PBPs (L65) | private sector investment (H54) |
| transport improvements (R42) | time savings (C41) |
| transport improvements (R42) | reduced vehicle operating costs (R48) |
| transport improvements (R42) | inducing private sector investment (O25) |
| transport improvements (R42) | job creation (J68) |
| neglecting indirect effects (C20) | overoptimistic assessments of PBPs' social value (H43) |
| value of proximity and cost of distance (R32) | complementarity in public and private investments (H54) |
| complementarity in public and private investments (H54) | potential agglomeration economies (R32) |
| PBPs (L65) | effectiveness contingent upon complementary policies (F68) |