Placed-Based Policies and Firm Productivity: Evidence From Priority Development Areas in Russia

Student: Ekaterina Langueva

Supervisor:

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Economics (Bachelor)

Final Grade: 9

Year of Graduation: 2024

Can place-based policies effectively boost the productivity of local businesses? This paper aims to assess the impact of the policy of territories of priority socio-economic development implementation on local firms that have been acknowledged as residents of these areas. The research is based on data describing Russian manufacturing enterprises and the register of resident enterprises in the covered territories. We examined several methods for assessing the impact of the policy on the revenue of the firms participating in the program. In the end, we have decided to use Mahalanobis distance matching. The results of this method show a 75% increase in revenue for the companies that take part in the TPD program. In this paper, we present all the findings that we have gathered.

Full text (added May 20, 2024)

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