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<p>This paper examines the role of industrial enclaves such as industrial parks and export processing zones in affecting firm performance in South Asia. Using firm-level data from the World Bank Enterprise Surveys, I investigate whether firms located within such industrial enclaves are associated with better outcomes as measured by sales, labor productivity and exports. Estimates obtained using ordinary least square estimation and propensity score matching show that enclave firms are associated with higher sales, labor productivity and better export performance than non-enclave firms. These estimates vary by firm size and industry type. The paper contributes to the empirical literature on the effectiveness of place-based industrial policies for developing countries and also provides firm level evidence for South Asia.</p>

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Do Firms in Industrial Enclaves Perform Better? Correlational Evidence from South Asia

  • 期刊论文

  • 发表日期：

    2026年5月7日

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  • Mitali Pradhan

摘要

This paper examines the role of industrial enclaves such as industrial parks and export processing zones in affecting firm performance in South Asia. Using firm-level data from the World Bank Enterprise Surveys, I investigate whether firms located within such industrial enclaves are associated with better outcomes as measured by sales, labor productivity and exports. Estimates obtained using ordinary least square estimation and propensity score matching show that enclave firms are associated with higher sales, labor productivity and better export performance than non-enclave firms. These estimates vary by firm size and industry type. The paper contributes to the empirical literature on the effectiveness of place-based industrial policies for developing countries and also provides firm level evidence for South Asia.