Working Paper: NBER ID: w24562
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; economic development; infrastructure; agglomeration economies; special economic zones
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 |
|---|---|
| Place-Based Policies (PBP) (R28) | direct benefits (J32) |
| Place-Based Policies (PBP) (R28) | indirect benefits (J32) |
| indirect benefits (J32) | economic growth (O49) |
| Place-Based Policies (PBP) (R28) | spatially uneven outcomes (R12) |
| induced private sector investment (F21) | job creation (J68) |
| Place-Based Policies (PBP) (R28) | agglomeration economies (R11) |
| agglomeration economies (R11) | virtuous or vicious cycles of development (O00) |