The Impact of Business Environment and Economic Geography on Plant-Level Productivity : An Analysis of Indian Industry

The authors' analysis of manufacturing plants sampled from India's major industrial centers shows large productivity gaps across cities. The gaps partly reflect differences in agglomeration economies and in market access. However, they are also explained to a greater extent by differences...

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Main Authors:	Lall, Somik V., Mengistae, Taye
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ASSETS BANKRUPTCY BANKRUPTCY LAWS BOOK VALUE CITIES COMPETITIVENESS COMPLIANCE COSTS CONSENSUS CONTRACT ENFORCEMENT COST OF CAPITAL DAMAGES DEREGULATION ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC PERFORMANCE ECONOMIES OF SCALE EFFECTIVE USE EMPLOYMENT EXCHANGE RATE EXPLOITATION EXPORTS EXTERNALITIES FARMS FEDERAL GOVERNMENT FINANCIAL MARKETS FOREIGN MARKET FOREIGN TRADE GDP GOVERNMENT AGENCIES GOVERNMENT POLICIES GOVERNMENT POLICY GROWTH RATE IDLE CAPACITY INDUSTRIALIZATION INEFFICIENCY INSOLVENCY INSOLVENCY PROCEDURES INVESTMENT CLIMATE LABOR FORCE LABOR MARKET LABOR MARKET REGULATIONS LABOR PRODUCTIVITY LAND PRICES LATIN AMERICAN LEGISLATION MACROECONOMIC STABILITY MARKET POWER METALS POLICY ENVIRONMENT POSITIVE EXTERNALITIES POTENTIAL INVESTORS POTENTIAL OUTPUT PRODUCERS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PROFIT MAXIMIZING FIRMS PROFITABILITY PUBLIC GOODS PURCHASING POWER REGULATORY FRAMEWORK REGULATORY POLICY SOCIAL INFRASTRUCTURE SOCIAL WELFARE STATE GOVERNMENT SUBSIDIARY TIME SERIES TOTAL FACTOR PRODUCTIVITY TRADE TAXES TRANSPORT VALUE ADDED WAGE RATES WELFARE GAINS
Online Access:	http://documents.worldbank.org/curated/en/2005/07/6058145/impact-business-environment-economic-geography-plant-level-productivity-analysis-indian-industry http://hdl.handle.net/10986/8253

id	okr-10986-8253
recordtype	oai_dc
spelling	okr-10986-82532021-04-23T14:02:43Z The Impact of Business Environment and Economic Geography on Plant-Level Productivity : An Analysis of Indian Industry Lall, Somik V. Mengistae, Taye ASSETS BANKRUPTCY BANKRUPTCY LAWS BOOK VALUE CITIES COMPETITIVENESS COMPLIANCE COSTS CONSENSUS CONTRACT ENFORCEMENT COST OF CAPITAL DAMAGES DEREGULATION ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC PERFORMANCE ECONOMIES OF SCALE EFFECTIVE USE EMPLOYMENT EXCHANGE RATE EXPLOITATION EXPORTS EXTERNALITIES FARMS FEDERAL GOVERNMENT FINANCIAL MARKETS FOREIGN MARKET FOREIGN TRADE GDP GOVERNMENT AGENCIES GOVERNMENT POLICIES GOVERNMENT POLICY GROWTH RATE IDLE CAPACITY INDUSTRIALIZATION INEFFICIENCY INSOLVENCY INSOLVENCY PROCEDURES INVESTMENT CLIMATE LABOR FORCE LABOR MARKET LABOR MARKET REGULATIONS LABOR PRODUCTIVITY LAND PRICES LATIN AMERICAN LEGISLATION MACROECONOMIC STABILITY MARKET POWER METALS POLICY ENVIRONMENT POSITIVE EXTERNALITIES POTENTIAL INVESTORS POTENTIAL OUTPUT PRODUCERS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PROFIT MAXIMIZING FIRMS PROFITABILITY PUBLIC GOODS PURCHASING POWER REGULATORY FRAMEWORK REGULATORY POLICY SOCIAL INFRASTRUCTURE SOCIAL WELFARE STATE GOVERNMENT SUBSIDIARY TIME SERIES TOTAL FACTOR PRODUCTIVITY TRADE TAXES TRANSPORT VALUE ADDED WAGE RATES WELFARE GAINS The authors' analysis of manufacturing plants sampled from India's major industrial centers shows large productivity gaps across cities. The gaps partly reflect differences in agglomeration economies and in market access. However, they are also explained to a greater extent by differences in the degree of labor regulation and in the severity of power shortages. This is an indication that governments can help narrow regional disparities in industrial growth by fostering the "right business environment" in locations where industry might otherwise be held back by powerful forces of economic geography. There is indeed a pattern in the data whereby geographically disadvantaged cities seem to compensate partially for their natural disadvantage by having a better business environment than more geographically advantaged locations. 2012-06-18T15:05:30Z 2012-06-18T15:05:30Z 2005-07 http://documents.worldbank.org/curated/en/2005/07/6058145/impact-business-environment-economic-geography-plant-level-productivity-analysis-indian-industry http://hdl.handle.net/10986/8253 English Policy Research Working Paper; No. 3664 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank 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
topic	ASSETS BANKRUPTCY BANKRUPTCY LAWS BOOK VALUE CITIES COMPETITIVENESS COMPLIANCE COSTS CONSENSUS CONTRACT ENFORCEMENT COST OF CAPITAL DAMAGES DEREGULATION ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC PERFORMANCE ECONOMIES OF SCALE EFFECTIVE USE EMPLOYMENT EXCHANGE RATE EXPLOITATION EXPORTS EXTERNALITIES FARMS FEDERAL GOVERNMENT FINANCIAL MARKETS FOREIGN MARKET FOREIGN TRADE GDP GOVERNMENT AGENCIES GOVERNMENT POLICIES GOVERNMENT POLICY GROWTH RATE IDLE CAPACITY INDUSTRIALIZATION INEFFICIENCY INSOLVENCY INSOLVENCY PROCEDURES INVESTMENT CLIMATE LABOR FORCE LABOR MARKET LABOR MARKET REGULATIONS LABOR PRODUCTIVITY LAND PRICES LATIN AMERICAN LEGISLATION MACROECONOMIC STABILITY MARKET POWER METALS POLICY ENVIRONMENT POSITIVE EXTERNALITIES POTENTIAL INVESTORS POTENTIAL OUTPUT PRODUCERS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PROFIT MAXIMIZING FIRMS PROFITABILITY PUBLIC GOODS PURCHASING POWER REGULATORY FRAMEWORK REGULATORY POLICY SOCIAL INFRASTRUCTURE SOCIAL WELFARE STATE GOVERNMENT SUBSIDIARY TIME SERIES TOTAL FACTOR PRODUCTIVITY TRADE TAXES TRANSPORT VALUE ADDED WAGE RATES WELFARE GAINS
spellingShingle	ASSETS BANKRUPTCY BANKRUPTCY LAWS BOOK VALUE CITIES COMPETITIVENESS COMPLIANCE COSTS CONSENSUS CONTRACT ENFORCEMENT COST OF CAPITAL DAMAGES DEREGULATION ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC PERFORMANCE ECONOMIES OF SCALE EFFECTIVE USE EMPLOYMENT EXCHANGE RATE EXPLOITATION EXPORTS EXTERNALITIES FARMS FEDERAL GOVERNMENT FINANCIAL MARKETS FOREIGN MARKET FOREIGN TRADE GDP GOVERNMENT AGENCIES GOVERNMENT POLICIES GOVERNMENT POLICY GROWTH RATE IDLE CAPACITY INDUSTRIALIZATION INEFFICIENCY INSOLVENCY INSOLVENCY PROCEDURES INVESTMENT CLIMATE LABOR FORCE LABOR MARKET LABOR MARKET REGULATIONS LABOR PRODUCTIVITY LAND PRICES LATIN AMERICAN LEGISLATION MACROECONOMIC STABILITY MARKET POWER METALS POLICY ENVIRONMENT POSITIVE EXTERNALITIES POTENTIAL INVESTORS POTENTIAL OUTPUT PRODUCERS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PROFIT MAXIMIZING FIRMS PROFITABILITY PUBLIC GOODS PURCHASING POWER REGULATORY FRAMEWORK REGULATORY POLICY SOCIAL INFRASTRUCTURE SOCIAL WELFARE STATE GOVERNMENT SUBSIDIARY TIME SERIES TOTAL FACTOR PRODUCTIVITY TRADE TAXES TRANSPORT VALUE ADDED WAGE RATES WELFARE GAINS Lall, Somik V. Mengistae, Taye The Impact of Business Environment and Economic Geography on Plant-Level Productivity : An Analysis of Indian Industry
geographic_facet	South Asia India
relation	Policy Research Working Paper; No. 3664
description	The authors' analysis of manufacturing plants sampled from India's major industrial centers shows large productivity gaps across cities. The gaps partly reflect differences in agglomeration economies and in market access. However, they are also explained to a greater extent by differences in the degree of labor regulation and in the severity of power shortages. This is an indication that governments can help narrow regional disparities in industrial growth by fostering the "right business environment" in locations where industry might otherwise be held back by powerful forces of economic geography. There is indeed a pattern in the data whereby geographically disadvantaged cities seem to compensate partially for their natural disadvantage by having a better business environment than more geographically advantaged locations.
format	Publications & Research :: Policy Research Working Paper
author	Lall, Somik V. Mengistae, Taye
author_facet	Lall, Somik V. Mengistae, Taye
author_sort	Lall, Somik V.
title	The Impact of Business Environment and Economic Geography on Plant-Level Productivity : An Analysis of Indian Industry
title_short	The Impact of Business Environment and Economic Geography on Plant-Level Productivity : An Analysis of Indian Industry
title_full	The Impact of Business Environment and Economic Geography on Plant-Level Productivity : An Analysis of Indian Industry
title_fullStr	The Impact of Business Environment and Economic Geography on Plant-Level Productivity : An Analysis of Indian Industry
title_full_unstemmed	The Impact of Business Environment and Economic Geography on Plant-Level Productivity : An Analysis of Indian Industry
title_sort	impact of business environment and economic geography on plant-level productivity : an analysis of indian industry
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/07/6058145/impact-business-environment-economic-geography-plant-level-productivity-analysis-indian-industry http://hdl.handle.net/10986/8253
_version_	1764407574269001728

The Impact of Business Environment and Economic Geography on Plant-Level Productivity : An Analysis of Indian Industry

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