An unintended consequence of place-based policies: A fall in informality

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

“…Depending on the distance buffers, we capture 54 to 60 percent of the places when looking at the patterns in 1998, and 29 to 31 percent of places when analyzing the pre-split trends between 1990 and 1998. In addition, Abeberese and Chaurey (2019) and Chaurey (2017) find similar results on the patterns and trends of employment in manufacturing industries before 2000, using data different from ours and for districts close to the border. Overall, the quasi-natural experiment nature of the state split is supported by our analysis and previous studies on this topic.…”

Place-Based Policies and the Future of Industrial Policy in Africa

“…The results also show a decline in the informal sector manufacturing value-added, firm size, and employment in informal sectors of untreated areas. In the same vein, Abeberese and Chaurey (2019) show that place-based policies can decrease the number of firms in the targeted areas. While the number of formal firms rises, the number of informal firms falls, leading to an overall decline in the number of firms.…”

Impacts of enterprise zones on local households in Vietnam

“…However, to the best of our knowledge, more researchers use data from developed countries than from developing countries. Abeberese and Chaurey (2019) found that the New Industrial Policy for Uttarakhand and Himachal Pradesh (India) resulted in a decrease in informal businesses, while maintaining a high number of formal firms. Chaurey (2017) also established that the place-based policy increased employment, output, fixed capital, and the number of firms.…”