Together We Stand? Agglomeration in Indian Manufacturing

This paper uses plant-level data to examine the impact of industrial and trade policy reforms on the geographic concentration of manufacturing industries in India from 1980 to 1999. First, the research shows that de-licensing and liberalization in foreign direct investment significantly reduced spat...

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Bibliographic Details
Main Authors:	Fernandes, Ana M., Sharma, Gunjan
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCOUNTING BARRIER BARRIERS TO COMPETITION BOOK VALUE CENTRALIZATION COMMODITIES COMPARATIVE ADVANTAGE COMPARATIVE ECONOMICS COMPETITIVE ADVANTAGE COMPETITORS CONDITIONS CONSTRUCTION CONSUMERS COST FUNCTIONS COST REDUCTION COSTS OF PRODUCTION DEREGULATION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIVIDENDS DOMESTIC MARKET DRIVERS ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC CONDITIONS ECONOMIC COSTS ECONOMIC CRITERIA ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC IMPLICATIONS ECONOMIC INTEGRATION ECONOMIC LIBERALIZATION ECONOMIC POLICIES ECONOMIC REFORMS ECONOMIES OF SCALE ELASTICITY EMPLOYMENT EXCHANGE RATE EXCHANGE RATE REGIME EXPORT MARKETS EXPORTS EXTERNALITIES FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENTS FOREIGN MARKETS FOREIGN OWNERSHIP FOREIGN TRADE FREE PRESS GEOGRAPHIC DISTRIBUTION GLOBALIZATION GROWTH RATE GROWTH RATES INCOME INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL AREAS INDUSTRIAL INVESTMENTS INDUSTRIAL LOCATION INDUSTRIAL POLICIES INDUSTRIAL POLICY INDUSTRIAL STRUCTURE INDUSTRIALISTS INDUSTRIALIZATION INNOVATION INTERNATIONAL MARKETS INTERNATIONAL TRADE INVENTORIES LABOR FORCE LABOR MOBILITY LABOR PRODUCTIVITY LABOR RELATIONS LABOUR LICENSE LICENSING MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MARGINAL COST MARKET ACCESS MARKET DISCIPLINE MARKET SHARES MIXED ECONOMY MONOPOLISTIC COMPETITION MOTIVATION NATURAL RESOURCE OUTPUT OUTPUT RATIO OUTPUTS POLITICAL ECONOMY POSITIVE EXTERNALITIES PRIVATE CAPITAL PRODUCERS PRODUCTION COSTS PRODUCTIVITY PRODUCTIVITY GROWTH PROTECTIONISM RATE OF GROWTH RENTS SAVINGS SKILLED LABOR SKILLED WORKERS SUPPLIERS TECHNOLOGICAL CHANGES THIRD WORLD TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE REFORMS UNSKILLED LABOR UNSKILLED WORKERS URBANIZATION VALUABLE INFORMATION WAGES WORLD ECONOMY WORLD MARKETS
Online Access:	http://documents.worldbank.org/curated/en/2012/05/16258556/together-stand-agglomeration-indian-manufacturing http://hdl.handle.net/10986/9344

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Summary:	This paper uses plant-level data to examine the impact of industrial and trade policy reforms on the geographic concentration of manufacturing industries in India from 1980 to 1999. First, the research shows that de-licensing and liberalization in foreign direct investment significantly reduced spatial concentration, but trade reforms had no significant effect on spatial concentration. Second, plants respond differently to policy reforms based on their size. Liberalization in foreign direct investment and de-licensing caused small plants to disperse, while trade liberalization had the opposite effect. However, for large plants trade liberalization led to lower spatial concentration.

Together We Stand? Agglomeration in Indian Manufacturing

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