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Do Large Agglomerations Lead To Economic Growth? Evidence From Urban India

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  • Sabyasachi Tripathi

Abstract

The cities and towns of India constitute the world’s second largest urban system besides contributing over 50 per cent of the country’s Gross Domestic Product (GDP). This phenomenon has been neglected by the existing studies and writings on urban India. By considering 59 large cities in India and employing new economic geography models, this paper investigates the relevant state and city-specific determinants of urban agglomeration. In addition, the spatial interactions between cities and the effect of urban agglomeration on India’s urban economic growth are estimated. The empirical results show that agglomeration economies are policy-induced as well as market-determined and offer evidence of the strong positive effect of agglomeration on urban economic growth and support for the non-linearity of the Core-Periphery (CP) model in India’s urban system.
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  • Sabyasachi Tripathi, 2013. "Do Large Agglomerations Lead To Economic Growth? Evidence From Urban India," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 25(3), pages 176-200, November.
    • Handle: RePEc:bla:revurb:v:25:y:2013:i:3:p:176-200
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    1. Sabyasachi Tripathi, 2021. "How does urbanization affect the human development index? A cross-country analysis," Asia-Pacific Journal of Regional Science, Springer, vol. 5(3), pages 1053-1080, October.
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    4. Gibson, John & Datt, Gaurav & Murgai, Rinku & Ravallion, Martin, 2017. "For India’s Rural Poor, Growing Towns Matter More Than Growing Cities," World Development, Elsevier, vol. 98(C), pages 413-429.
    5. Tripathi, Sabyasachi, 2020. "Does economic development reduce household size? Evidence from India," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 982-999.
    6. Tripathi, Sabyasachi, 2018. "Does Higher Economic Development Reduce Household Size? Evidence from India," MPRA Paper 86684, University Library of Munich, Germany.
    7. Sabyasachi Tripathi, 2019. "Do economic reforms promote urbanization in India?," Asia-Pacific Journal of Regional Science, Springer, vol. 3(3), pages 647-674, October.
    8. Subash Sasidharan & Shandre Thangavelu, 2023. "Industry Agglomeration, Urban Amenities, and Regional Development in India," Working Papers DP-2023-14, Economic Research Institute for ASEAN and East Asia (ERIA).
    9. Sabyasachi TRIPATHI, 2017. "How To Develop An Equitable Distribution Of Urban Gdp By Smart City Development In India," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 131-146, December.
    10. Sridhar, Kala Seetharam, 2016. "Costs and Benefits of Urbanization: The Indian Case," ADBI Working Papers 607, Asian Development Bank Institute.
    11. Sabyasachi Tripathi, 2021. "Towards sustainable urban system through the development of small towns in India," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 777-797, June.
    12. Rani, Chetana & Tripathi, Sabyasachi, 2016. "Determinants of Urbanization in Different Size/Class Distribution of Cities/Towns in India," MPRA Paper 74757, University Library of Munich, Germany.
    13. Tripathi, Sabyasachi, 2019. "Urbanization and Human Development Index: Cross-country evidence," MPRA Paper 97474, University Library of Munich, Germany.
    14. Sabyasachi Tripathi, 2021. "Do macroeconomic factors promote urbanization? Evidence from BRICS countries," Asia-Pacific Journal of Regional Science, Springer, vol. 5(2), pages 397-426, June.
    15. Tripathi SABYASACHI & Kaur SHUPINDER, 2018. "Do Negative Externalities Have Any Impact On Populations Agglomerations? Evidence From Urban India," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 13(3), pages 5-24, August.
    16. Sabyasachi Tripathi & Moinak Maiti, 2023. "Does urbanization improve health outcomes: a cross country level analysis," Asia-Pacific Journal of Regional Science, Springer, vol. 7(1), pages 277-316, March.
    17. Sabyasachi TRIPATHI, 2018. "Determinants Of Employment Situation In Large Agglomerations In India: A Cross-Sectional Study," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 61-75, July.
    18. Subrat Sarangi & R. K. Renin Singh & Brajaballav Kar, 2022. "A comparative assessment of migrant and indigenous entrepreneurs on regional development: A case of Odisha, India," Growth and Change, Wiley Blackwell, vol. 53(1), pages 170-199, March.
    19. Mrinalini Goswami, 2018. "Conceptualizing peri-urban-rural landscape change for sustainable management," Working Papers 425, Institute for Social and Economic Change, Bangalore.
    20. Ramachandran, Renjith & Sasidharan, Subash & Doytch, Nadia, 2020. "Foreign direct investment and industrial agglomeration: Evidence from India," Economic Systems, Elsevier, vol. 44(4).
    21. Tripathi, Sabyasachi & Kaur, Hardeep, 2017. "Determinants of Rural to Urban Migration in Large Agglomerations in India: An Empirical Analysis," MPRA Paper 76484, University Library of Munich, Germany.
    22. Johann Spitzer & Giuseppe Folloni, 2013. "Is Growth of Large Cities Linked to Economic and Institutional Weaknesses?," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2013(3), pages 23-52.
    23. Tripathi, Sabyasachi, 2021. "Relationship between urbanization and health outcomes in Indian states," MPRA Paper 109800, University Library of Munich, Germany.

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    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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