Agglomeration Economies and Productivity in Indian Industry
"New" economic geography theory, and the development of innovative methods of analysis have renewed interest in the location, and spatial concentration of economic activities. The authors examine the extent to which agglomeration economie...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2001/08/1570690/agglomeration-economies-productivity-indian-industry http://hdl.handle.net/10986/19562 |
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okr-10986-195622021-04-23T14:03:43Z Agglomeration Economies and Productivity in Indian Industry Lall, Somik Shalizi, Zmarak Deichmann, Uwe ACCOUNTING PRINCIPLES AVERAGE PRODUCTION COSTS BASIC METALS BENEFITS IN KIND CAPITAL GOODS CATCHMENT AREA CITIES CITY SIZE COMPETITIVE MARKETS CONSTANT RETURNS TO SCALE CONSUMER SURPLUS CONSUMERS CROWDING OUT DEMAND ANALYSIS ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC GEOGRAPHY ECONOMIC STRUCTURE EMPIRICAL ANALYSIS EMPIRICAL RESEARCH EMPIRICAL STUDIES EMPLOYMENT EQUILIBRIUM EXPENDITURES EXTERNALITIES FIXED COSTS FUTURE RESEARCH GINI COEFFICIENT HIGH LEVELS HOUSING HUMAN CAPITAL INCOME INCREASING RETURNS INCREASING RETURNS TO SCALE INFORMATION ASYMMETRIES INPUT PRICES INTERMEDIATE GOODS LABOR COSTS LABOR PRODUCTIVITY MARGINAL COST MARGINAL PRODUCT MONOPOLISTIC COMPETITION NEGATIVE EXTERNALITIES NEW ENTRANTS PER CAPITA INCOME PERFECT COMPETITION POPULATION DENSITY POSITIVE EFFECTS PRODUCERS PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INCREASES PRODUCTION PROCESS PRODUCTION PROCESSES PRODUCTION TECHNOLOGY PRODUCTIVITY PROFIT MAXIMIZATION PUBLIC GOOD PURCHASING POWER REAL WAGE RATES RETURNS TO SCALE TELECOMMUNICATIONS TRADE FLOWS TRANSPORT URBANIZATION VALUE ADDED WAGE RATES WAGES WEALTH "New" economic geography theory, and the development of innovative methods of analysis have renewed interest in the location, and spatial concentration of economic activities. The authors examine the extent to which agglomeration economies contribute to economic productivity. They distinguish three sources of agglomeration economies: 1) At the firm level, from improved access to market centers. 2) At the industry level, from enhanced intra-industry linkages. 3) At the regional level, from inter-industry urbanization economies. The input demand framework they use in analysis, permits the production function to be estimated jointly with a set of cost shares, and, makes allowances for non-constant returns to scale, and for agglomeration economies to be factor-augmenting. They use firm-level data for standardized manufacturing in India, together with spatially detailed physio-geographic information that considers the availability, and quality of transport networks linking urban centers - thereby accounting for heterogeneity in the density of transport networks, between different parts of the country. The sources, and magnitudes of agglomeration vary considerably between industrial sectors. Their results indicate that access to markets, through improvements in inter-regional infrastructure, is an important determinant of firm-level productivity, whereas the benefits of locating in dense urban areas, do not appear to offset the associated costs. Improving the quality, and availability of transport infrastructure, linking smaller urban areas to the rest of the inter-regional network, would improve market access for manufacturing plants. It would also give standardized manufacturing activities a chance to move out of large, costly urban centers, to lower cost secondary centers. 2014-08-21T17:25:04Z 2014-08-21T17:25:04Z 2001-08 http://documents.worldbank.org/curated/en/2001/08/1570690/agglomeration-economies-productivity-indian-industry http://hdl.handle.net/10986/19562 English en_US Policy Research Working Paper;No. 2663 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia India |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING PRINCIPLES AVERAGE PRODUCTION COSTS BASIC METALS BENEFITS IN KIND CAPITAL GOODS CATCHMENT AREA CITIES CITY SIZE COMPETITIVE MARKETS CONSTANT RETURNS TO SCALE CONSUMER SURPLUS CONSUMERS CROWDING OUT DEMAND ANALYSIS ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC GEOGRAPHY ECONOMIC STRUCTURE EMPIRICAL ANALYSIS EMPIRICAL RESEARCH EMPIRICAL STUDIES EMPLOYMENT EQUILIBRIUM EXPENDITURES EXTERNALITIES FIXED COSTS FUTURE RESEARCH GINI COEFFICIENT HIGH LEVELS HOUSING HUMAN CAPITAL INCOME INCREASING RETURNS INCREASING RETURNS TO SCALE INFORMATION ASYMMETRIES INPUT PRICES INTERMEDIATE GOODS LABOR COSTS LABOR PRODUCTIVITY MARGINAL COST MARGINAL PRODUCT MONOPOLISTIC COMPETITION NEGATIVE EXTERNALITIES NEW ENTRANTS PER CAPITA INCOME PERFECT COMPETITION POPULATION DENSITY POSITIVE EFFECTS PRODUCERS PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INCREASES PRODUCTION PROCESS PRODUCTION PROCESSES PRODUCTION TECHNOLOGY PRODUCTIVITY PROFIT MAXIMIZATION PUBLIC GOOD PURCHASING POWER REAL WAGE RATES RETURNS TO SCALE TELECOMMUNICATIONS TRADE FLOWS TRANSPORT URBANIZATION VALUE ADDED WAGE RATES WAGES WEALTH |
| spellingShingle |
ACCOUNTING PRINCIPLES AVERAGE PRODUCTION COSTS BASIC METALS BENEFITS IN KIND CAPITAL GOODS CATCHMENT AREA CITIES CITY SIZE COMPETITIVE MARKETS CONSTANT RETURNS TO SCALE CONSUMER SURPLUS CONSUMERS CROWDING OUT DEMAND ANALYSIS ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC GEOGRAPHY ECONOMIC STRUCTURE EMPIRICAL ANALYSIS EMPIRICAL RESEARCH EMPIRICAL STUDIES EMPLOYMENT EQUILIBRIUM EXPENDITURES EXTERNALITIES FIXED COSTS FUTURE RESEARCH GINI COEFFICIENT HIGH LEVELS HOUSING HUMAN CAPITAL INCOME INCREASING RETURNS INCREASING RETURNS TO SCALE INFORMATION ASYMMETRIES INPUT PRICES INTERMEDIATE GOODS LABOR COSTS LABOR PRODUCTIVITY MARGINAL COST MARGINAL PRODUCT MONOPOLISTIC COMPETITION NEGATIVE EXTERNALITIES NEW ENTRANTS PER CAPITA INCOME PERFECT COMPETITION POPULATION DENSITY POSITIVE EFFECTS PRODUCERS PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INCREASES PRODUCTION PROCESS PRODUCTION PROCESSES PRODUCTION TECHNOLOGY PRODUCTIVITY PROFIT MAXIMIZATION PUBLIC GOOD PURCHASING POWER REAL WAGE RATES RETURNS TO SCALE TELECOMMUNICATIONS TRADE FLOWS TRANSPORT URBANIZATION VALUE ADDED WAGE RATES WAGES WEALTH Lall, Somik Shalizi, Zmarak Deichmann, Uwe Agglomeration Economies and Productivity in Indian Industry |
| geographic_facet |
South Asia India |
| relation |
Policy Research Working Paper;No. 2663 |
| description |
"New" economic geography
theory, and the development of innovative methods of
analysis have renewed interest in the location, and spatial
concentration of economic activities. The authors examine
the extent to which agglomeration economies contribute to
economic productivity. They distinguish three sources of
agglomeration economies: 1) At the firm level, from improved
access to market centers. 2) At the industry level, from
enhanced intra-industry linkages. 3) At the regional level,
from inter-industry urbanization economies. The input demand
framework they use in analysis, permits the production
function to be estimated jointly with a set of cost shares,
and, makes allowances for non-constant returns to scale, and
for agglomeration economies to be factor-augmenting. They
use firm-level data for standardized manufacturing in India,
together with spatially detailed physio-geographic
information that considers the availability, and quality of
transport networks linking urban centers - thereby
accounting for heterogeneity in the density of transport
networks, between different parts of the country. The
sources, and magnitudes of agglomeration vary considerably
between industrial sectors. Their results indicate that
access to markets, through improvements in inter-regional
infrastructure, is an important determinant of firm-level
productivity, whereas the benefits of locating in dense
urban areas, do not appear to offset the associated costs.
Improving the quality, and availability of transport
infrastructure, linking smaller urban areas to the rest of
the inter-regional network, would improve market access for
manufacturing plants. It would also give standardized
manufacturing activities a chance to move out of large,
costly urban centers, to lower cost secondary centers. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Lall, Somik Shalizi, Zmarak Deichmann, Uwe |
| author_facet |
Lall, Somik Shalizi, Zmarak Deichmann, Uwe |
| author_sort |
Lall, Somik |
| title |
Agglomeration Economies and Productivity in Indian Industry |
| title_short |
Agglomeration Economies and Productivity in Indian Industry |
| title_full |
Agglomeration Economies and Productivity in Indian Industry |
| title_fullStr |
Agglomeration Economies and Productivity in Indian Industry |
| title_full_unstemmed |
Agglomeration Economies and Productivity in Indian Industry |
| title_sort |
agglomeration economies and productivity in indian industry |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2001/08/1570690/agglomeration-economies-productivity-indian-industry http://hdl.handle.net/10986/19562 |
| _version_ |
1764440009098657792 |