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Industrial location in post-reform India: patterns of inter-regional divergence and intra-regional convergence

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  • Sanjoy Chakravorty
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    Abstract

    Where do new industrial investments locate, and what factors drive the industrial location decisions? Do these investments follow the model of 'divergence followed by convergence' suggested by the cumulative causation, agglomeration economies, and transport-costs approaches? These questions are examined with district-level data from India for the pre- and post-reform periods using: first, tables and maps of concentration and clustering, aggregated for all industry and disaggregated into five sectors (Heavy Industries, Chemicals and Petroleum, Textiles, Agribusiness, and Utilities), and second, logistic and OLS/Heckman selection regression models for these six elements. The data provide solid evidence both of inter-regional divergence and intra-regional convergence, and suggest that 'concentrated decentralisation' is the appropriate framework for understanding industrial location in post-reform India.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

    Volume (Year): 40 (2003)
    Issue (Month): 2 ()
    Pages: 120-152

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    Handle: RePEc:taf:jdevst:v:40:y:2003:i:2:p:120-152

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    Cited by:
    1. Ajay Sharma & S Chandrasekhar, 2014. "Growth of the urban shadow, spatial distribution of economic activities and commuting by workers in rural and Urban India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2014-015, Indira Gandhi Institute of Development Research, Mumbai, India.
    2. Esther Duflo & Michael Greenstone & Nicholas Ryan, 2013. "Truth-telling by Third-party Auditors and the Response of Polluting Firms: Experimental Evidence from India," The Quarterly Journal of Economics, Oxford University Press, vol. 128(4), pages 1499-1545.
    3. Tripathi, Sabyasachi, 2012. "Estimating Urban Agglomeration Economies for India: A New Economic Geography Perspective," MPRA Paper 43501, University Library of Munich, Germany.
    4. Saikia, Dilip, 2009. "Industrial Location in India under Liberalization," MPRA Paper 27821, University Library of Munich, Germany.

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