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Trade Liberalization and Local Development in India: Evidence from Nighttime Lights

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  • Priyaranjan Jha
  • Karan Talathi

Abstract

We study the impact of the Indian trade liberalization of 1991 on development at the district level using satellite nighttime lights per capita as a proxy for development. We find that on average trade liberalization increased nighttime lights per capita but there was considerable heterogeneity in the effect. In particular, districts in states with flexible labor laws, districts with better road networks, proximity to the coast, or higher female labor force participation rate seem to have benefited more than other districts.

Suggested Citation

  • Priyaranjan Jha & Karan Talathi, 2023. "Trade Liberalization and Local Development in India: Evidence from Nighttime Lights," CESifo Working Paper Series 10294, CESifo.
    • Handle: RePEc:ces:ceswps:_10294
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    References listed on IDEAS

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    1. Petia Topalova, 2010. "Factor Immobility and Regional Impacts of Trade Liberalization: Evidence on Poverty from India," American Economic Journal: Applied Economics, American Economic Association, vol. 2(4), pages 1-41, October.
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    More about this item

    Keywords

    trade liberalization; nighttime lights; per capita income; tariffs; labor laws;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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