Land Rezoning and Structural Transformation in Rural India: Evidence from the Industrial Areas Program

David Blakeslee; Ritam Chaurey; Ram Fishman; Samreen Malik

doi:10.1093/wber/lhab004

Land Rezoning and Structural Transformation in Rural India: Evidence from the Industrial Areas Program

David Blakeslee, Ritam Chaurey, Ram Fishman, Samreen Malik

Economics

Research output: Contribution to journal › Article › peer-review

Abstract

Zoning laws that restrict rural land to agricultural production pose an important institutional barrier to industrial development. We study the effects of the Industrial Areas (IA) program in Karnataka, India, which rezoned agricultural land for industrial use, but without the economic incentives common with other place-based policies. We find that the program caused a large increase in firm creation and employment in villages overlapping the IAs. Moreover, the surrounding areas experienced spillover effects, with workers shifting from agricultural to non-Agricultural employment, and entrepreneurs establishing numerous small-scale service sector and agricultural firms.

Original language	English (US)
Pages (from-to)	488-513
Number of pages	26
Journal	World Bank Economic Review
Volume	36
Issue number	2
DOIs	https://doi.org/10.1093/wber/lhab004
State	Published - May 1 2022

Keywords

industrial areas
labor market
place-based policies
spillovers

ASJC Scopus subject areas

Accounting
Development
Finance
Economics and Econometrics

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10.1093/wber/lhab004

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abstract = "Zoning laws that restrict rural land to agricultural production pose an important institutional barrier to industrial development. We study the effects of the Industrial Areas (IA) program in Karnataka, India, which rezoned agricultural land for industrial use, but without the economic incentives common with other place-based policies. We find that the program caused a large increase in firm creation and employment in villages overlapping the IAs. Moreover, the surrounding areas experienced spillover effects, with workers shifting from agricultural to non-Agricultural employment, and entrepreneurs establishing numerous small-scale service sector and agricultural firms.",

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Land Rezoning and Structural Transformation in Rural India: Evidence from the Industrial Areas Program

Abstract

Keywords

ASJC Scopus subject areas

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