Reduce employment of locals;
Reduce the wages of (most) locals;
Reduce venture capital investment and IPOing;
Reduce patenting;
Increase outsourcing and offshoring.
Many of these effects are compounded when it involves smaller firms.
But do these non-police approaches work? A recent paper by Blattman, Duncan, Lessing and Tobon (2024) (“BDLT”) tackles this issue with a fascinating research design and find somewhat surprising answers!