Place-Based Preferential Tax Policy and its Spatial Effects: Evidence from India’s Program on Industrially Backward Districts | Asian Development Bank

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Place-Based Preferential Tax Policy and its Spatial Effects: Evidence from India’s Program on Industrially Backward Districts

Event | 10 April 2018 ADBI, Tokyo, Japan

Speaker: Yi Jiang
Affiliation: Asian Development Bank (ADB)
Time: 15:00–16:00

Background

This seminar will evaluate a tax exemption program initiated by the Indian government in 1994 to promote manufacturing in 123 industrially backward districts. The way the backward districts were identified allows the use of a regression discontinuity design to evaluate the impacts of the program. It was found that the program has led to a significant increase in firm entry and employment, particularly among light manufacturing industries in better-off backward districts. Meanwhile, the program also resulted in significant displacement effects on districts neighboring those backward districts with relatively weak economic activity. The findings emphasize that the spatial effects of place-based policies deserve greater attention from policy makers.

About the speaker

Yi Jiang is a senior economist at the Economic Research and Regional Cooperation Department of the ADB. His research interest lies in public, urban, development, and environmental economics. His work has been published in Economic Development and Cultural Change, Environmental and Resource Economics, Energy Economics, and China Economic Review. He also worked at the East Asia Department of ADB for over 4 years on lending and policy advisory projects related to urban water supply, pollution reduction, and environmental rehabilitation, rural finance, and agricultural development. Yi holds a PhD in economics from the University of Maryland, College Park, an MA in statistics from the University of Missouri, Columbia, and a bachelor's degree in finance and economics from Zhejiang University, People’s Republic of China.

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