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Place-based policies for development (English)

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.


  • Author

    Duranton,Gilles, Venables,Anthony J.

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  • Document Type

    Policy Research Working Paper

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  • Region

    The World Region,

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  • Doc Name

    Place-based policies for development

  • Keywords

    mobility of factors of production; market failure; special economic zone; enforcement of property right; local economic development policy; net social value; market access; lagging region; spatial context; total labor force; output per worker; price of good; transport cost; private investment; intensity of competition; cost of living; public service provision; standard economic analysis; department of economics; vehicle operating cost; net social benefit; centers of activity; central business district; inefficient resource allocation; series of meetings; higher value use; provision of infrastructure; Finance & Procurement; tax and regulation; level of employment; supply of worker; human capital development; market access effect; lack of alternative; factor price equalization; income from land; flow of migrants; number of journeys; general production function; factor of production; classical trade theory; mobility of people; national highway system; clusters of activity; flow of service; total factor productivity; extent of competition; cost of access; product market competition; term of data; investment in buildings; Mobility of labor; negative shock; Labor Market; cost-benefit analysis; urban job; marginal value; land price; urban context; production cost; local market; real depreciation; displacement effect; productivity gap; comparative advantage; agglomeration economy; commercial properties; health outcome; mobile factor; net effect; small fraction; External Economies; urban employment; credible commitment; agricultural output; private investor; Job Creation; urban policy; multiple equilibria; sunk cost; economic appraisal; urban transport; increasing return; complementary policies; standard approach; aggregate net; spatial economics; Public Services; good road; opportunity cost; empirical literature; general equilibrium; export sector; policy target; positive value; market size; factor mobility; land rent; positive externality; real cost; transfer payment; market price; spatial patterns; smaller number; causal chain; urban land; formal sector; measurement problem; marginal product; informal sector; skilled labor; welfare change; political consequence; real wage; raising income; relative wage; land right; market outcome; market potential; agglomeration effect; common feature; urban living; skill requirement; restrictive condition; regional inequality; private activity; business cost; causal effect; rural transportation infrastructure; regulatory change; path dependence; economic geography; employment growth; simple model; empirical knowledge; Social Welfare; perfect competition; empirical work; economic integration; Economic Policy; transport line; smaller one; inefficient market; aggregate benefit; infrastructure planning; connected points; trading partner; export market; spatial scale; manufacturing production; spatial policy; intermediate level; historical circumstances; productivity factor; intermediate input; International Trade; productive asset; delivery time; economic model; Electric Power; path dependency; rapid change; Public Infrastructure; city plan; wage adjustment; financial resource; regional competitiveness; building regulation; threshold effects; price mechanism; complementary measure; Urban Infrastructure; urban economy; open access; systematic analysis; constrained resource; productive activity; real resource; future return; quantitative estimate; vicious cycle; rural area; positive feedback; full employment; fixed supply; specialist worker; factor market; national market; market condition; knowledge spillover; cluster formation; decreasing return; employment centers; urban hierarchy; private cost; negative externality; private benefit; agricultural employment; absolute advantage; adjustment mechanism; diminishing return; labor supply; efficiency saving; construction cost; benchmark case; private decisions; horizontal axis; modern sector; labor reallocation; rural ones; housing consumption



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Duranton,Gilles Venables,Anthony J.

Place-based policies for development (English). Policy Research working paper,no. WPS 8410 Washington, D.C. : World Bank Group.