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Mineral Resource Endowments and Investment Destinations: A Panel Data Analysis of Indian States

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  • Basanta K Pradhan
  • Rashmi Rastogi

    (Institute of Economic Growth, Delhi)

Abstract

This study examines the role of mineral resources in the concentration of investment in states in India. It computes the mineral resource abundance of states, and analyse whether their resource endowment played any role in attracting investment between 2006 and 2012. The study finds that states with abundant mineral reserves attract more proposed investment, and that resource abundance does not impact actual investment. Proposed investment is concentrated into highly populated low income states, while actual investment is concentrated into states with large market size. Among transport facilities, port facilities are an important determinant of proposed investment.

Suggested Citation

  • Basanta K Pradhan & Rashmi Rastogi, 2015. "Mineral Resource Endowments and Investment Destinations: A Panel Data Analysis of Indian States," IEG Working Papers 354, Institute of Economic Growth.
    • Handle: RePEc:awe:wpaper:354
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    References listed on IDEAS

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    More about this item

    Keywords

    Investment; mineral resource endowment; regional industry location; panel data;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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