陆毅, Jin Wang, and Lianming Zhu. "Place-based policies, creation and agglomeration economies: evidence from China's economic zone program." American Economic Journal: Economic Policy, forthcoming.
Combining rich firm and administrative data, this paper examines the incidence and effectiveness of a prominent place-based policy in China: Special Economic Zones. Establishing zones is found to have had a positive effect on capital investment, employment, output, productivity and wages, and to have increased the number of firms in the designated areas. Net entry plays a larger role in generating those effects than incumbents. The special zone programís net beneÖts over three years are estimated to amount to about US$15.42 billion. Capital-intensive industries benefit more than labor-intensive ones from the zone programs.