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Are special economic zones a curse on those "chosen" to be evicted? : evidence form West Bengal, India

Author

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  • Paul, Saumik
  • Sarma, Vengadeshvaran

Abstract

Using data from a self-administered survey of 1,017 households we assess the long-term impact of establishing a special economic zone, on those who are exogenously selected to be displaced. We find those who are displaced suffer from lower land compensation and lack of adequate property rights. There is also some evidence of lower labour market participation among those who are displaced. However, in the long term, across measurable welfare indicators, we do not find that displaced households are significantly different from other households. One source of this resilience is through employment at the special economic zone – which is higher among displaced households compared to other households. Another factor that contributed to the absence of differences is spill-over effects; which made access to employment, education and other facilities about homogenous across displaced and non-displaced households.

Suggested Citation

  • Paul, Saumik & Sarma, Vengadeshvaran, 2014. "Are special economic zones a curse on those "chosen" to be evicted? : evidence form West Bengal, India," IDE Discussion Papers 472, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper472
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    References listed on IDEAS

    as
    1. Saumik Paul & Vengadeshvaran Sarma, 2013. "The Livelihood Effects of Industrialization on Displaced Households: Evidence from Falta Special Economic Zone," Discussion Papers 13/09, University of Nottingham, CREDIT.
    2. Ghatak, Maitreesh & Mitra, Sandip & Mookherjee, Dilip & Nath, Anusha, 2013. "Land Acquisition and Compensation in Singur: What Really Happened?," CAGE Online Working Paper Series 121, Competitive Advantage in the Global Economy (CAGE).
    3. Paul, Saumik & Sarma, Vengadeshvaran, 2013. "The livelihood effects of industrialization on displaced households: Evidence from falta special economic zone, West Bengal," ZEW Discussion Papers 13-083, ZEW - Leibniz Centre for European Economic Research.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    India; Special economic zone; Employment; Compensation; Rights of property; Rural societies; Settlements; Property Right; Rural livelihoods;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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