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Urbanization and Economic Growth in Punjab (India): An Empirical Analysis

Author

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  • Mahey, Kavita
  • Tripathi, Sabyasachi

Abstract

In recent decades, urbanization in Punjab is occurring rapidly by reducing the share of agricultural activity and increasing rural to urban migration. In this perspective, the present paper using Census data describes the recent past trends and patterns of Punjab’s urbanization from 1961 to 2011. It investigates the relevant determinants of urbanization in Punjab. Finally, it measures the impact of urbanization on urban economic growth in Punjab. The empirical results show that the growth rate of urban population is higher than that of the total population in Punjab. Urban agglomerations and urban areas of in Punjab also are increasing rapidly. Most importantly, it has been seen that urban population in Punjab is concentrated in an around Class I cities than other class of cities/towns. The OLS regression results show that road distance to sub division (or nearest city population of 1 lakh and more) has a negative effect on urbanization in Punjab measured by size of city population. On the other hand, city-wise total road length has a positive impact on urbanization in Punjab. In addition to that, city-wise total number of schools, colleges and electricity connections has a positive impact on urbanization in Punjab measured by city population density. The paper also finds the positive link between urbanization measured by size of district urban population and urban economic growth measured by district domestic product in Punjab. Finally, the paper suggests several policy options for planned urbanization in Punjab for not only to improve economic growth in Punjab but also in India as well.

Suggested Citation

  • Mahey, Kavita & Tripathi, Sabyasachi, 2016. "Urbanization and Economic Growth in Punjab (India): An Empirical Analysis," MPRA Paper 71325, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:71325
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    References listed on IDEAS

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    1. Kalamkar, S.S., 2009. "Urbanisation and Agricultural Growth in India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 64(3), pages 1-20.
    2. Sabyasachi Tripathi, 2015. "An Overview of India’s Urbanization, Urban Economic Growth and Urban Equity," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(3), pages 115-127, March.
    3. Philippe Aghion & Steven Durlauf (ed.), 2005. "Handbook of Economic Growth," Handbook of Economic Growth, Elsevier, edition 1, volume 1, number 1.
    4. Sabyasachi Tripathi, 2013. "Is Urban Economic Growth Inclusive in India?," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 7(4), pages 507-539, November.
    5. Ajay Sharma & S. Chandrashekar, 2014. "Urbanization and Spatial Patterns of Internal Migration in India," Working Papers id:5894, eSocialSciences.
    6. World Bank, 2004. "India : Investment Climate and Manufacturing Industry," World Bank Publications - Reports 14378, The World Bank Group.
    7. Kala Seetharam Sridhar, 2010. "Determinants Of City Growth And Output In India," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 22(1), pages 22-38, March.
    8. Mitra, Arup & Murayama, Mayumi, 2008. "Rural to Urban Migration: A District Level Analysis for India," IDE Discussion Papers 137, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    9. Chetan Vaidya, 2009. "Urban Issues, Reforms and Way Forward in India," Working Papers id:2311, eSocialSciences.
    10. Henderson, J. Vernon, 2005. "Urbanization and Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 24, pages 1543-1591, Elsevier.
    11. Henderson, Vernon, 2003. "The Urbanization Process and Economic Growth: The So-What Question," Journal of Economic Growth, Springer, vol. 8(1), pages 47-71, March.
    12. Cohen, Barney, 2006. "Urbanization in developing countries: Current trends, future projections, and key challenges for sustainability," Technology in Society, Elsevier, vol. 28(1), pages 63-80.
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    Citations

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    Cited by:

    1. Tripathi, Sabyasachi, 2018. "Does Higher Economic Development Reduce Household Size? Evidence from India," MPRA Paper 86684, University Library of Munich, Germany.
    2. Atin Majumder & Raj Setia & P. K. Kingra & Harjinder Sembhi & Som Pal Singh & Brijendra Pateriya, 2021. "Estimation of land surface temperature using different retrieval methods for studying the spatiotemporal variations of surface urban heat and cold islands in Indian Punjab," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(11), pages 15921-15942, November.
    3. 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.
    4. Sabyasachi Tripathi & Moinak Maiti, 2023. "Does urbanization improve health outcomes: a cross country level analysis," Asia-Pacific Journal of Regional Science, Springer, vol. 7(1), pages 277-316, March.
    5. Sabyasachi Tripathi, 2019. "Do economic reforms promote urbanization in India?," Asia-Pacific Journal of Regional Science, Springer, vol. 3(3), pages 647-674, October.
    6. Sabyasachi Tripathi, 2021. "Towards sustainable urban system through the development of small towns in India," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 777-797, June.
    7. Sabyasachi Tripathi & Chetana Rani, 2018. "The impact of agricultural activities on urbanization: evidence and implications for India," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 22(1), pages 123-144, January.
    8. Arup MITRA & Sabyasachi TRIPATHI, 2024. "Do More Women Find Employment As The Urban Population Grows?," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 19(2), pages 88-117, May.
    9. Amal, Nair & Sabyasachi, Tripathi, 2025. "Determinants of Urbanization: A Comparative Analysis Across Global Cities," MPRA Paper 124672, University Library of Munich, Germany.

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    Keywords

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    JEL classification:

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

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