In this paper, we study the impact of a French enterprise zones program—the “Zones Franches Urbaines ” (ZFUs) policy—on establishments ’ location decisions. Our empirical analysis is based on a micro-geographic dataset which provides exhaustive information on the location of establishments in France over the period 2000-2007 at the census block level. We use a difference in difference approach combining spatial and time differencing. We also do triple difference estimations, using the fact that targeted urban areas have been selected in different waves over time. Finally, we exploit a discontinuity in the eligibility criteria of the policy as an exogenous source of variation to estimate the impact of the treatment. Our results show that the French ZFU policy has a positive and sizable impact on location choices. However, we also find that the policy mostly generates displacement effects, in particular through relocation of firms from the un-treated to the treated part within municipalities. Finally, the impact is shown to be highly heterogeneous across zones, firms and industries. The overall cost of moving establishments within municipalities is relatively high.

assistance. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

The global performance of the French labour market since the beginning of the great recession is in line with that of previous recent recessions. France’s unemployment rate is still far from the historical

Exploiting two geo-coded …rm censuses, this paper examines the impact of Chinas Special Economic Zones on economic activity in the targeted areas. We …nd that eco-nomic zones have a positive e¤ect on employment, output and capital, and increase the number of …rms. We also …nd that …rm births and deaths play a larger role in explain-ing the zonese¤ects than incumbents and relocations. Finally, a zones e¤ectiveness depends on a programs features. Capital-intensive industries exhibit larger positive zone e¤ects than labor-intensive ones. Location characteristics such as market poten-tial and transportation accessibility are not critical factors in enhancing the program e¤ects.

and Will Strange for very helpful comments.The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

The Centre for Market and Public Organisation (CMPO) is a leading research centre, combining expertise in economics, geography and law. Our objective is to study the intersection between the public and private sectors of the economy, and in particular to understand the right way to organise and deliver public services. The Centre aims to develop research, contribute to the public debate and inform policy-making. CMPO, now an ESRC Research Centre was established in 1998 with two large grants from The Leverhulme Trust. In 2004 we were awarded ESRC Research Centre status, and CMPO now combines core funding from both the ESRC and the

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