Stimulating rural development through tax incentives: an evaluation of France's Zones de revitalisation rurale (ZRR) program

Stimuler le développement rural au moyen d'incitations fiscales: une évaluation du programme français Zones de revitalisation rurale (ZRR)

Pascale Lofredi ()
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Pascale Lofredi: CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - ENESAD - Etablissement National d'Enseignement Supérieur Agronomique de Dijon - INRA - Institut National de la Recherche Agronomique

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Abstract: Abstract This article presents an economic impact evaluation of the French "Zones de Revitalisation Rurale" (ZRR) program. This program aims at the economic development of rural communes identified as particularly fragile and declining, through targeted fiscal and social benefits. To correct for the selection bias that might remain despite the appropriate choice of a comparison group from among the unsupported areas, the impact estimation methodology used includes panel models with fixed effects as well as random growth rates (Heckman and Hotz, 1989; Papke 1994). This study controls for the effect of other development programs, such as the European Integrated Development Programs, which may simultaneously apply to ZRRs. As with previous studies using these evaluation techniques (Boarnet and Bogart, 1996; Bondonio and Engberg, 2000), no positive effects were found, apart from a mixed impact on certain particularly targeted sectors, namely industry and business services. JEL classification: R5; H32; C23 Keywords: Public policy evaluation; development zoning; tax exemptions; free trade zones; firm location; rural revitalization zones.

Keywords: JEL classification: R5 H32 C23 Evaluation de politique publique zonage de développement exemptions fiscales zones franches localisation des firmes zones de revitalisation rurale ZRR Grey Hatch : TRDP Limits; JEL classification: R5; H32; C23 Evaluation de politique publique; zonage de développement; exemptions fiscales; zones franches; localisation des firmes; zones de revitalisation rurale ZRR; Grey Hatch : TRDP; Limits (search for similar items in EconPapers)
Date: 2005
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