In fact, they bring greater benefits to the economy of the South, which suffers more acutely from the national ills, notably in public services and infrastructure but also in the enforcement of law and order. Specific policies offering incentives to firms may be helpful, but their usefulness must not be overrated.
They involve administrative costs, possible distortions in the allocation of resources, and the risk that they will be abused, especially if they rely on discretionary mechanisms. Even the benefit of stimulating investment, despite being greater for firms in the South, is modest in relation to the resources employed.