EconPapers    
Economics at your fingertips  
 

The effects of supporting local business: Evidence from the UK

Elias Einiö and Henry Overman ()

Regional Science and Urban Economics, 2020, vol. 83, issue C

Abstract: This paper assesses the effects of a significant place-based intervention that targeted local businesses in deprived areas in the UK. To gain identification, we use data at a fine spatial scale and a regression discontinuity design exploiting the eligibility deprivation rank rule based on a pre-determined deprivation index. We detect no overall effects on employment in treated areas but find a significant displacement of employment from nearby untreated areas, corresponding to around 10% of local employment. The results suggest that indirect displacement effects may substantially weaken the ability of local support programmes targeting the non-tradable sector to reduce economic inequality.

Keywords: Employment; Business support; Local growth; Programme evaluation; Displacement; Regression discontinuity (search for similar items in EconPapers)
JEL-codes: H25 J20 O40 R11 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S016604621930050X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The effects of supporting local business: evidence from the UK (2020) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:83:y:2020:i:c:s016604621930050x

DOI: 10.1016/j.regsciurbeco.2019.103500

Access Statistics for this article

Regional Science and Urban Economics is currently edited by D.P McMillen and Y. Zenou

More articles in Regional Science and Urban Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2021-08-08
Handle: RePEc:eee:regeco:v:83:y:2020:i:c:s016604621930050x