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Specialization, diversity, and Indian manufacturing growth

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  • Ghani, Ejaz
  • Kerr, William R.
  • Tewari, Ishani

Abstract

This paper examines the specialization and diversity of manufacturing industries within Indian districts. Prior to India's recent economic growth and liberalization, specialization levels in 1989 were substantially higher than similar metrics calculated for the United States. From 1989 to 2010, average specialization levels for Indian districts declined to a level that is now quite comparable to the United States. Diversity levels similarly increased. Specialization and diversity levels in India are becoming more persistent with time. Manufacturing plants display higher productivity in districts that display both properties. From 1989 to 2010, manufacturing employment growth was higher in districts that were more specialized at the start of the period.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6648.

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Date of creation: 01 Oct 2013
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Handle: RePEc:wbk:wbrwps:6648

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Keywords: Water and Industry; Labor Policies; E-Business; Political Economy; Information Security&Privacy;

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  1. Glenn Ellison & Edward L. Glaeser, 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," NBER Working Papers 4840, National Bureau of Economic Research, Inc.
  2. Chang-Tai Hsieh & Peter J. Klenow, 2007. "Misallocation and Manufacturing TFP in China and India," Discussion Papers 07-006, Stanford Institute for Economic Policy Research.
  3. Ghani, Ejaz & Kerr, William R. & O'Connell, Stephen D., 2013. "Input usage and productivity in Indian manufacturing plants," Policy Research Working Paper Series 6656, The World Bank.
  4. Antonio Ciccone & Robert E. Hall, 1995. "Productivity and the density of economic activity," Economics Working Papers 120, Department of Economics and Business, Universitat Pompeu Fabra.
  5. Ejaz Ghani & Arti Grover Goswami & William R. Kerr, 2012. "Is India's Manufacturing Sector Moving Away From Cities?," NBER Working Papers 17992, National Bureau of Economic Research, Inc.
  6. Desmet, Klaus & Ghani, Ejaz & O'Connell, Stephen & Rossi-Hansberg, Esteban, 2012. "The spatial development of India," Policy Research Working Paper Series 6060, The World Bank.
  7. Duncan Black & Vernon Henderson, 2003. "Urban evolution in the USA," Journal of Economic Geography, Oxford University Press, vol. 3(4), pages 343-372, October.
  8. Henderson, Vernon, 1997. "Externalities and Industrial Development," Journal of Urban Economics, Elsevier, vol. 42(3), pages 449-470, November.
  9. Lall, Somik V. & Shalizi, Zmarak & Deichmann, Uwe, 2004. "Agglomeration economies and productivity in Indian industry," Journal of Development Economics, Elsevier, vol. 73(2), pages 643-673, April.
  10. William Kerr & Edward Glaeser & Glenn Ellison, 2007. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," Working Papers 07-13, Center for Economic Studies, U.S. Census Bureau.
  11. Ejaz Ghani & Arti Grover Goswami & William R. Kerr, 2012. "Highway to Success: The Impact of the Golden Quadrilateral Project for the Location and Performance of Indian Manufacturing," NBER Working Papers 18524, National Bureau of Economic Research, Inc.
  12. Ghani, Ejaz & Kerr, William R. & O'Connell, Stephen D., 2013. "The exceptional persistence of India's unorganized sector," Policy Research Working Paper Series 6454, The World Bank.
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