Place-based Policies and Household Wealth in Africa

Matthew Amalitinga Abagna, Cecília Hornok and Alina Mulyukova

Open Access Publications from Kiel Institute for the World Economy from Kiel Institute for the World Economy (IfW Kiel)

Abstract: This paper provides novel evidence on the impact of a prominent place-based policy – Special Economic Zones (SEZs) – on the economic well-being of African households. Exploiting time variation in SEZ establishment on a dataset of repeated cross-sections of households in 10 African countries during 1990-2020, we show that households living near SEZs become wealthier relative to the national average after SEZ establishment. The effect accrues mostly within 10 km of SEZs, is not driven by selective migration, and is accompanied byimproved access to household utilities, higher consumption of durable goods, increased educational attainment and a shift away from agricultural activities.

Date: 2025
New Economics Papers: this item is included in nep-afr, nep-dev and nep-geo
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkie:318396

DOI: 10.1016/j.jdeveco.2025.103482

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