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Industrial Activity in Indian States: The Role of Infrastructure

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Author Info
Dutta, Jayasri
Horsewood, Nicholas
Vasilakos, Nicholas

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Abstract

We use panel data for fourteen Indian states to assess the influence of public infrastructure on industrial activity, namely productivity, employment, real wages and investment, at the state level and over the period 1974-1998. Our results indicate that the length of national highways has on average the greatest impact on each of the four measures of industrial activity. While the length of national highways and electricity generating capacity are found to be important determinants of state real wages and productivity, total highway length is a key variable in determining the level of investment in fixed capital in each state.

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File URL: http://mpra.ub.uni-muenchen.de/7184/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 7184.

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Date of creation: Jul 2007
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Handle: RePEc:pra:mprapa:7184

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Related research
Keywords: Industrial activity; productivity; infrastructure; wages; investment;

Find related papers by JEL classification:
H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity

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This page was last updated on 2009-12-1.

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