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Do Large Agglomerations Lead To Economic Growth? Evidence From Urban India

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  • Sabyasachi Tripathi

Abstract

The cities and towns of India constitute the world’s second largest urban system besides contributing over 50 per cent of the country’s Gross Domestic Product (GDP). This phenomenon has been neglected by the existing studies and writings on urban India. By considering 59 large cities in India and employing new economic geography models, this paper investigates the relevant state and city-specific determinants of urban agglomeration. In addition, the spatial interactions between cities and the effect of urban agglomeration on India’s urban economic growth are estimated. The empirical results show that agglomeration economies are policy-induced as well as market-determined and offer evidence of the strong positive effect of agglomeration on urban economic growth and support for the non-linearity of the Core-Periphery (CP) model in India’s urban system.
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  • Sabyasachi Tripathi, 2013. "Do Large Agglomerations Lead To Economic Growth? Evidence From Urban India," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 25(3), pages 176-200, November.
  • Handle: RePEc:bla:revurb:v:25:y:2013:i:3:p:176-200
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    Cited by:

    1. Tripathi, Sabyasachi & Kaur, Shupinder, 2017. "Do negative externalities have any impact on population agglomerations? Evidence from Urban India," MPRA Paper 76897, University Library of Munich, Germany.
    2. Tripathi, Sabyasachi & Kaur, Hardeep, 2017. "Determinants of Rural to Urban Migration in Large Agglomerations in India: An Empirical Analysis," MPRA Paper 76484, University Library of Munich, Germany.
    3. Johann Spitzer & Giuseppe Folloni, 2013. "Is Growth of Large Cities Linked to Economic and Institutional Weaknesses?," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2013(3), pages 23-52.
    4. Sridhar, Kala Seetharam, 2016. "Costs and Benefits of Urbanization: The Indian Case," ADBI Working Papers 607, Asian Development Bank Institute.
    5. Sabyasachi TRIPATHI, 2018. "Determinants Of Employment Situation In Large Agglomerations In India: A Cross-Sectional Study," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 61-75, July.
    6. Rani, Chetana & Tripathi, Sabyasachi, 2016. "Determinants of Urbanization in Different Size/Class Distribution of Cities/Towns in India," MPRA Paper 74757, University Library of Munich, Germany.
    7. Tripathi, Sabyasachi, 2014. "Determinants of large city slum incidence in India: A cross-sectional study," MPRA Paper 57239, University Library of Munich, Germany.
    8. repec:eee:wdevel:v:98:y:2017:i:c:p:413-429 is not listed on IDEAS
    9. Tripathi, Sabyasachi, 2018. "Does Higher Economic Development Reduce Household Size? Evidence from India," MPRA Paper 86684, University Library of Munich, Germany.
    10. Tripathi, Sabyasachi, 2018. "Do Economic Reforms Promote Urbanization in India?," MPRA Paper 86591, University Library of Munich, Germany.
    11. Gibson, John & Datt, Gaurav & Murgai, Rinku & Ravallion, Martin, 2017. "For India’s Rural Poor, Growing Towns Matter More Than Growing Cities," World Development, Elsevier, vol. 98(C), pages 413-429.

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    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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