Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/185209 
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11749
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We evaluate the impact of a place-based infrastructure development scheme directed towards India's most "backward" districts, on the performance of microenterprises. "Backward" districts were selected based on a transparent score-based assignment mechanism. Using a Fuzzy Regression Discontinuity Design, we find that firms in treated districts had higher profits, revenues, and employment. Improvements in electrification was an important channel driving these results, as firms used more electricity and had a lower likelihood of facing a power cut. We also find increases in migrants, and proportion of new firms in treated districts, along with negative spillovers in areas closer to the treated districts.
Subjects: 
infrastructure
microenterprises
place-based policy
regression discontinuity
JEL: 
O12
O18
O25
R11
Document Type: 
Working Paper

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