Capital source and the location of industrial investment: a tale of divergence from post-reform India
AbstractThe industrial locational decisions of private capital are expected to be profit-maximizing or efficiency-oriented, and directed towards leading industrial regions, coasts and metropolises, and away from socialist governments. Industrial investments by the state, on the other hand, are expected to consider equity and security issues, and therefore be less biased towards leading regions. Since the state as an agent of industrialization is weaker under liberalization, and private capital is increasingly dominant, structural reforms can be expected to lead to increased regional divergence. These propositions are tested using district-level data from the pre-reform and post-reform periods in India using logistic and OLS regression models. The results provide unambiguous support for the outlined propositions and raise concerns about the political and welfare implications of these location decisions. Copyright © 2003 John Wiley & Sons, Ltd.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.
Volume (Year): 15 (2003)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www3.interscience.wiley.com/journal/5102/home
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Raul Livas Elizondo & Paul Krugman, 1992.
"Trade Policy and the Third World Metropolis,"
NBER Working Papers
4238, National Bureau of Economic Research, Inc.
- Markusen, Ann & Hall, Peter & Campbell, Scott & Deitrick, Sabina, 1991. "The Rise of the Gunbelt: The Military Remapping of Industrial America," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780195066487, October.
- Hanushek, Eric A & Song, Byung Nak, 1978. "The Dynamics of Postwar Industrial Location," The Review of Economics and Statistics, MIT Press, vol. 60(4), pages 515-22, November.
- Bunyaratavej, Kraiwinee & Hahn, Eugene D. & Doh, Jonathan P., 2008. "Multinational investment and host country development: Location efficiencies for services offshoring," Journal of World Business, Elsevier, Elsevier, vol. 43(2), pages 227-242, March.
- Hanas Cader & John Leatherman, 2011. "Small business survival and sample selection bias," Small Business Economics, Springer, Springer, vol. 37(2), pages 155-165, September.
- Saikia, Dilip, 2009. "Industrial Location in India under Liberalization," MPRA Paper 27821, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.