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The Employment Effect of Place-Based Policies: Evidence from India

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dc.contributor.authorSinha Roy, Sutirtha
dc.contributor.authorLi, Yue
dc.date.accessioned2020-11-30T20:41:50Z
dc.date.available2020-11-30T20:41:50Z
dc.date.issued2020-11
dc.description.abstractMany governments in developing countries have pursued policies targeting specific geographic areas over the past several decades. However, only a few have rigorously evaluated the causal impact of these interventions. This paper examines the effectiveness of a prominent place-based policy in India: the centrally sponsored New Industrial Policy for the state of Uttarakhand. Using georeferenced economic census data, the analysis applies a boundary discontinuity research design and zones in on the unique border between Uttarakhand and Uttar Pradesh, two states that were officially one before the implementation of the New Industrial Policy. The findings show that there was a significant and abrupt increase in employment at the town and village level when crossing the state border from Uttar Pradesh to Uttarakhand after the full implementation of the New Industrial Policy. The conclusion even holds for firms within the same sector. The increase is mainly due to larger firm sizes and expansions into new industries. A main component of the New Industrial Policy was excise tax incentives for certain industries. The paper finds that the increase in cross-border employment is higher for sectors receiving excise tax incentives than others. Additionally, exploring spillovers between industries, the paper shows that, controlling for the direct effects, the sectors with labor requirements similar to those receiving excise tax incentives also experience an increase in employment. Finally, the growth in the number of firms in Uttar Pradesh close to the border remained stable before and after the New Industrial Policy, which suggests the results are not fully driven by firms relocating from Uttar Pradesh to Uttarakhand.en
dc.identifierhttp://documents.worldbank.org/curated/en/785411605819935532/The-Employment-Effect-of-Place-Based-Policies-Evidence-from-India
dc.identifier.doi10.1596/1813-9450-9477
dc.identifier.urihttps://hdl.handle.net/10986/34832
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 9477
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectPOVERTY REDUCTION
dc.subjectNEW INDUSTRIAL POLICY
dc.subjectSPATIAL ECONOMICS
dc.subjectAGGLOMERATION ECONOMIES
dc.subjectTAX INCENTIVE
dc.subjectEXCISE TAX
dc.subjectCOAGGLOMERATION
dc.subjectEMPLOYMENT
dc.subjectBOUNDARY DISCONTINUITY
dc.subjectSOCIAL DISPARITY
dc.titleThe Employment Effect of Place-Based Policiesen
dc.title.subtitleEvidence from Indiaen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleThe Employment Effect of Place-Based Policies: Evidence from India
okr.date.disclosure2020-11-19
okr.date.doiregistration2025-04-10T11:33:19.508656Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/785411605819935532/The-Employment-Effect-of-Place-Based-Policies-Evidence-from-India
okr.guid785411605819935532
okr.identifier.doi10.1596/1813-9450-9477
okr.identifier.externaldocumentum090224b087feec64_2_0
okr.identifier.internaldocumentum32596317
okr.identifier.reportWPS9477
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/785411605819935532/pdf/The-Employment-Effect-of-Place-Based-Policies-Evidence-from-India.pdfen
okr.region.administrativeSouth Asia
okr.region.countryIndia
okr.statistics.combined1289
okr.statistics.dr785411605819935532
okr.statistics.drstats916
okr.topicPublic Sector Development::Public Sector Economics
okr.topicInternational Economics and Trade::Export Competitiveness
okr.topicInternational Economics and Trade::Foreign Trade Promotion and Regulation
okr.topicInternational Economics and Trade::Trade Facilitation
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.topicPrivate Sector Development::Competitiveness and Competition Policy
okr.unitPoverty and Equity Global Practice and the Office of the Chief Economist, South Asia Region
relation.isAuthorOfPublicationcd101f8e-cccb-511d-b2f2-9b1f37c53561
relation.isAuthorOfPublication.latestForDiscoverycd101f8e-cccb-511d-b2f2-9b1f37c53561
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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