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Do enterprise zones promote local business development? Evidence from Vietnam

Tien Vu and Hiroyuki Yamada

No 2019-04, AGI Working Paper Series from Asian Growth Research Institute

Abstract: We examined the effects of Vietnamese enterprise zones on local businesses based on different patterns of place-based policies as well as the ownership structure of the zone infrastructure developers (ZIDs). We constructed a panel of communes during 2000–2007 using a census survey of firms having more than nine employees and a census of zones and zone-based firms.We found that place-based policies led to growth in the number of jobs and firms in the communes where enterprise zones were located, even after excluding zone-based firms. Our findings also suggest that privately owned ZIDs worked best under corporate-tax incentives, while zones with a designated central government agency as the ZID had adverse spillover effects on business development in neighboring communes of the same district.

Keywords: Enterprise zone; Place-based policy; Infrastructure; Private sector; Local business; O14; O18; O25; L53; L52 (search for similar items in EconPapers)
Date: 2019-03
New Economics Papers: this item is included in nep-sea, nep-tra and nep-ure
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