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Agglomeration Economies and Rural-to-Urban Migration in India

Author

Listed:
  • Arup Mitra

    (Department of Economics, South Asian University, Delhi, India)

  • Rajesh Raushan

    (Indian Institute of Dalit Studies, Delhi, India)

Abstract

Keeping in view the concept of agglomeration economies and the New Economic Geography (NEG) angle, this paper makes an attempt to examine the rural to urban population movement at the district level in India. The findings do not favour a strong positive association between levels of urbanization and migration rates. However, there exists a cluster of districts which are able to attract migrants on a large scale in spite of being already urbanized. The work participation rate, share of services and construction work, and literacy rate all form parts of this positive nexus, indicating that opportunities exist with increased levels of urbanization which in turn prompt people to migrate. The positive spill-over effects of higher levels of urbanization are not limited to the urban spaces only as the adjoining rural areas also seem to have undergone a significant transformation. The land use pattern and activities are changing and some of the developmental impact is evident. However, the regional variations in this respect are evident. There are sharp differences in the relationship between urbanization level and migration rates across regions. The nature of urbanization and its determinants and the outcome variables of urbanization and migration also unravel regional variations. Besides, there are many districts with higher levels of urbanization; yet, they are not able to attract migrants at a rapid pace. New investment opportunities can be created in these spaces to reduce the cost of growth and make employment generation process more effective, facilitating the rural population to take the benefits of agglomeration economies.

Suggested Citation

  • Arup Mitra & Rajesh Raushan, 2024. "Agglomeration Economies and Rural-to-Urban Migration in India," Journal of Economic Analysis, Anser Press, vol. 3(2), pages 81-100, June.
    • Handle: RePEc:bba:j00001:v:3:y:2024:i:2:p:81-100:d:180
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    References listed on IDEAS

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    1. Rudiger Ahrend & Emily Farchy & Ioannis Kaplanis & Alexander C. Lembcke, 2014. "What Makes Cities More Productive? Evidence on the Role of Urban Governance from Five OECD Countries," OECD Regional Development Working Papers 2014/5, OECD Publishing.
    2. Mitra, Arup & Nagar, Jay Prakash, 2018. "City size, deprivation and other indicators of development: Evidence from India," World Development, Elsevier, vol. 106(C), pages 273-283.
    3. Evert Meijers & Martijn Burger & Roberto Camagni & Roberta Capello & Andrea Caragliu, 2016. "Static vs. dynamic agglomeration economies. Spatial context and structural evolution behind urban growth," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 133-158, March.
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