Download or read book Agglomeration Economies and Productivity Growth in India written by Astha Agarwalla and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Agglomeration economies have been analyzed in the literature as drivers of economic growth, as these contribute to productivity enhancement. The primary objective of this paper is to ascertain the existence of agglomeration economies, and to examine the extent to which these have contributed to productivity growth in India. Two sources of agglomeration economies are distinguished (i) at the industry level localization economies of intra-industry linkage; and (ii) at the regional level inter-industry urbanization economies. Growth accounting framework is used with agglomeration parameters included in the shift term of a general production function, coefficients of which are estimated through panel data regression. I employ state level data for 25 state economies in India for the period 1980-81 to 2006-07. There is evidence that urbanization economies tend to exist; however, there is considerable variation in the sources and magnitude of agglomeration economies across sectors. Results indicate that for service sector, the economies of urbanization exist on a lower level of urbanization, whereas for manufacturing, these economies are present at higher levels. Results support regional diversity more than localization, even if some differences can be seen across sectors.

Download or read book The Impact of Business Environment and Economic Geography on Plant level Productivity written by Somik V. Lall and published by World Bank Publications. This book was released on 2005 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The authors' analysis of manufacturing plants sampled from India's major industrial centers shows large productivity gaps across cities. The gaps partly reflect differences in agglomeration economies and in market access. However, they are also explained to a greater extent by differences in the degree of labor regulation and in the severity of power shortages. This is an indication that governments can help narrow regional disparities in industrial growth by fostering the "right business environment" in locations where industry might otherwise be held back by powerful forces of economic geography. There is indeed a pattern in the data whereby geographically disadvantaged cities seem to compensate partially for their natural disadvantage by having a better business environment than more geographically advantaged locations. "--World Bank web site.

Download or read book Agglomeration Economies and Productivity in Indian Industry written by Somik V. Lall and published by . This book was released on 2016 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: The benefits to Indian ma ...

Download or read book Agglomeration Economies and Productivity in Inidian Industry written by Somik V. Lall and published by World Bank Publications. This book was released on 1999 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: August 2001 The benefits to Indian manufacturing firms of locating in dense urban areas do not appear to offset the associated costs. Improving the quality and availability of transport infrastructure linking smaller urban areas to the rest of the interregional network would improve manufacturing plants' access to markets and would give standardized manufacturing activities a chance to move out of large, costly urban centers to lower cost secondary centers. "New" economic geography theory and the development of innovative methods of analysis have renewed interest in the location and spatial concentration of economic activities. Lall, Shalizi, and Deichmann examine the extent to which agglomeration economies contribute to economic productivity. They distinguish three sources of agglomeration economies: * At the firm level, from improved access to market centers. * At the industry level, from enhanced intra-industry linkages. * At the regional level, from inter-industry urbanization economies. The input demand framework they use in analysis permits the production function to be estimated jointly with a set of cost shares and makes allowances for nonconstant returns to scale and for agglomeration economies to be factor-augmenting. They use firm-level data for standardized manufacturing in India, together with spatially detailed physio-geographic information that considers the availability and quality of transport networks linking urban centers--thereby accounting for heterogeneity in the density of transport networks between different parts of the country. The sources and magnitudes of agglomeration vary considerably between industrial sectors. Their results indicate that access to markets through improvements in interregional infrastructure is an important determinant of firm-level productivity, whereas the benefits of locating in dense urban areas do not appear to offset the associated costs. Improving the quality and availability of transport infrastructure linking smaller urban areas to the rest of the interregional network would improve market access for manufacturing plants. It would also give standardized manufacturing activities a chance to move out of large, costly urban centers to lower cost secondary centers. This paper--a product of Infrastructure and Environment, Development Research Group--is part of a larger effort in the group to understand the role of economic geography and urbanization in the development process. The authors may be contacted at [email protected], zshalizi @worldbank.org, or [email protected].

Download or read book The Impact of Business Environment and Economic Geography on Plant Level Productivity written by Somik V. Lall and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors' analysis of manufacturing plants sampled from India's major industrial centers shows large productivity gaps across cities. The gaps partly reflect differences in agglomeration economies and in market access. However, they are also explained to a greater extent by differences in the degree of labor regulation and in the severity of power shortages. This is an indication that governments can help narrow regional disparities in industrial growth by fostering the "right business environment" in locations where industry might otherwise be held back by powerful forces of economic geography. There is indeed a pattern in the data whereby geographically disadvantaged cities seem to compensate partially for their natural disadvantage by having a better business environment than more geographically advantaged locations.

Download or read book AGGLOMERATION ECONOMIES IN INDIAN STATES AN ASSET TO PRODUCTIVITY written by Lorenz Noe and published by . This book was released on 2015 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt: India, like many countries in the Global South finds itself in the midst of a demographic transition. Though lagging behind some nations like China, India is rapidly urbanizing and is set to cross the majority-urban mark in 2050 according to the UN. For a nation of 1.1 billion people, this movement into and growth of cities will bring with it great challenges but also great promise. As the growth of cities worldwide draws the attention of policymakers, theoretical explanations for how cities work also deserve a revisit. Much of the current urbanization movement is heralded as a sign of the maturation of developing country economies, emulating the urbanization movements that preceded the industrialization and modernization phenomena of Europe and North America. However, increasingly, it is becoming apparent that many developing economies face "urbanization without industrialization"(Gollin et al 2013), in which the movement into cities happens more because of marginally higher incomes in urban areas, instead of productivity gains in rural areas that free up labor. This alternate phenomena is feared to contribute to congestion, countering many of the positive agglomeration effects that should result from urbanization, as predicted by the literature so far. In order to ground this argument in evidence, I am examining returns to scale and total factor productivity of manufacturing firms at the Indian state level across variously urbanized states using Annual Survey of Industries (ASI) data, using Lall et al 2003 as inspiration. The results of my analysis do not lend themselves to parsimonious conclusions, yet overall, agglomeration economies do not seem to have a net positive effect on returns to scale and total factor productivity, which supports existing research by Lall and underscores the need to conduct further research into returns to scale and productivity in Indian cities. Depending on the robustness of these results, investments in transportation, enabling firms to more efficiently allocate resources, and making labor markets more efficient should be the first priorities of policymakers.

Download or read book Business Environment Clustering and Industry Location written by Somik V. Lall and published by World Bank Publications. This book was released on 2005 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: How do differences in the local business environment influence location of industry within countries? How do the benefits of a good business environment compare with those from good market access and agglomeration economies from industry clustering? The authors examine these questions by analyzing location decisions of individual firms. Using data from a recently completed survey of manufacturing firms in India, they find that both the local business environment and agglomeration economies significantly influence business location choices across cities. In particular, excessive regulation of labor and of other industrial activities reduces the probability of a business locating in a city. The authors ' findings imply that in order to attract industrial activity, smaller or remoter cities need to offer even more attractive policy concessions or reforms to offset the effects of their relatively adverse (economic) geography. Their methodology pays special attention to the identification of agglomeration economies in the presence of unobserved sources of natural advantage.

Download or read book Agglomeration Economics written by Edward L. Glaeser and published by University of Chicago Press. This book was released on 2010-04-15 with total page 376 pages. Available in PDF, EPUB and Kindle. Book excerpt: When firms and people are located near each other in cities and in industrial clusters, they benefit in various ways, including by reducing the costs of exchanging goods and ideas. One might assume that these benefits would become less important as transportation and communication costs fall. Paradoxically, however, cities have become increasingly important, and even within cities industrial clusters remain vital. Agglomeration Economics brings together a group of essays that examine the reasons why economic activity continues to cluster together despite the falling costs of moving goods and transmitting information. The studies cover a wide range of topics and approach the economics of agglomeration from different angles. Together they advance our understanding of agglomeration and its implications for a globalized world.

Download or read book AGGLOMERATION ECONOMIES TECHNOLOGY SPILLOVER AND COMPANY PRODUCTIVITY GROWTH written by Paul A. GEROSKI and published by . This book was released on 1998 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book From Hindu Growth to Productivity Surge written by Mr.Dani Rodrik and published by International Monetary Fund. This book was released on 2004-05-01 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores the causes of India's productivity surge around 1980, more than a decade before serious economic reforms were initiated. Trade liberalization, expansionary demand, a favorable external environment, and improved agricultural performance did not play a role. We find evidence that the trigger may have been an attitudinal shift by the government in the early 1980s that unlike the reforms of the 1990s, was probusiness rather than promarket in character, favoring the interests of existing businesses rather than new entrants or consumers. A relatively small shift elicited a large productivity response, because India was far away from its income-possibility frontier. Registered manufacturing, which had been built up in previous decades, played an important role in determining which states took advantage of the changed environment.

Download or read book Productivity and Growth in Indian Manufacturing written by Isher Judge Ahluwalia and published by Oxford University Press, USA. This book was released on 1991 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt: What caused the increase in industrial productivity in the marketing sector of India in the 1980s after nearly two decades of industrial stagnation? This book examines the causes of this turn around, including improvements in planning and performance of infrastructure sectors, as well as changes in industrial and trade policies. The study emphasizes the need for policy reform at the microeconomic level combined with strong measures designed to enhance a macroeconomic environment which is conducive to growth.

Download or read book Households Or Locations written by and published by . This book was released on 2015 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Policy makers in developing countries, including India, are increasingly sensitive to the links between spatial transformation and economic development. However, the empirical knowledge available on those links is most often insufficient to guide policy decisions. There is no shortage of case studies on urban agglomerations of different sorts, or of benchmarking exercises for states and districts, but more systematic evidence is scarce. To help address this gap, this paper combines insights from poverty analysis and urban economics, and develops a methodology to assess spatial performance with a high degree of granularity. This methodology is applied to India, where individual household survey records are mapped to "places" (both rural and urban) below the district level. The analysis disentangles the contributions household characteristics and locations make to labor earnings, proxied by nominal household expenditure per capita. The paper shows that one-third of the variation in predicted labor earnings is explained by the locations where households reside and by the interaction between these locations and household characteristics such as education. In parallel, this methodology provides a workable metric to describe spatial productivity patterns across India. The paper shows that there is a gradation of spatial performance across places, rather than a clear rural-urban divide. It also finds that distance matters: places with higher productivity are close to each other, but some spread their prosperity over much broader areas than others. Using the spatial distribution of this metric across India, the paper further classifies places at below-district level into four tiers: top locations, their catchment areas, average locations, and bottom locations. The analysis finds that some small cities are among the top locations, while some large cities are not. It also finds that top locations and their catchment areas include many high-performing rural places, and are not necessarily more unequal than average locations. Preliminary analysis reveals that these top locations and their catchment areas display characteristics that are generally believed to drive agglomeration economies and contribute to faster productivity growth.

Download or read book Households Or Locations written by and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Policy makers in developing countries, including India, are increasingly sensitive to the links between spatial transformation and economic development. However, the empirical knowledge available on those links is most often insufficient to guide policy decisions. There is no shortage of case studies on urban agglomerations of different sorts, or of benchmarking exercises for states and districts, but more systematic evidence is scarce. To help address this gap, this paper combines insights from poverty analysis and urban economics, and develops a methodology to assess spatial performance with a high degree of granularity. This methodology is applied to India, where individual household survey records are mapped to "places" (both rural and urban) below the district level. The analysis disentangles the contributions household characteristics and locations make to labor earnings, proxied by nominal household expenditure per capita. The paper shows that one-third of the variation in predicted labor earnings is explained by the locations where households reside and by the interaction between these locations and household characteristics such as education. In parallel, this methodology provides a workable metric to describe spatial productivity patterns across India. The paper shows that there is a gradation of spatial performance across places, rather than a clear rural-urban divide. It also finds that distance matters: places with higher productivity are close to each other, but some spread their prosperity over much broader areas than others. Using the spatial distribution of this metric across India, the paper further classifies places at below-district level into four tiers: top locations, their catchment areas, average locations, and bottom locations. The analysis finds that some small cities are among the top locations, while some large cities are not. It also finds that top locations and their catchment areas include many high-performing rural places, and are not necessarily more unequal than average locations. Preliminary analysis reveals that these top locations and their catchment areas display characteristics that are generally believed to drive agglomeration economies and contribute to faster productivity growth.

Download or read book High Growth Firms written by Arti Grover Goswami and published by World Bank Publications. This book was released on 2019-02-19 with total page 222 pages. Available in PDF, EPUB and Kindle. Book excerpt: Remarkably, a small fraction of firms account for most of the job and output creation in high-income and developing countries alike. Does this imply that the path to enabling more economic dynamism lies in selectively targeting high-potential firms? Or would pursuing broad-based reforms that minimize distortions be more effective? Inspired by these questions, this book presents new evidence on the incidence, characteristics, and drivers of high-growth firms based on in-depth studies of firm dynamics in Brazil, Côte d’Ivoire, Ethiopia, Hungary, India, Indonesia, Mexico, South Africa, Thailand, Tunisia, and Turkey. Its findings reveal that high-growth firms are not only powerful engines of job and output growth but also create positive spillovers for other businesses along the value chain. At the same time, the book debunks several myths about policies to support firm dynamism that focus on outward characteristics, such as firm size, sector, location, or past performance. Its findings show that most firms struggle to sustain rapid rates of expansion and that the relationship between high growth and productivity is often weak. Consequently, the book calls for a shift toward policies that improve the quality of firm growth by supporting innovation, managerial skills, and firms’ ability to leverage global linkages and agglomeration. To help policy makers structure policies that support firm growth, the book proposes a new ABC framework of growth entrepreneurship: improving Allocative efficiency, encouraging Business-to-business spillovers, and strengthening firm Capabilities. This book is the third volume of the World Bank Productivity Project, which seeks to bring frontier thinking on the measurement and determinants of productivity to global policy makers. 'Policy makers often get carried away by the disproportionate contributions of high-growth firms to job and output growth and commit to pursuing policies targeting the potential ‘stars.’ This book separates fact from fiction underpinning such interventions through a comprehensive analysis of high-growth firms across a range of developing countries, making a compelling argument that public policy to pick prospective winners is neither possible nor desirable. Policy makers would be wise to consult its arguments and policy advice when designing the next generation of policies to support the growth of firms.' William R. Kerr Professor of Business Administration, Harvard University; author of The Gift of Global Talent: How Migration Shapes Business, Economy and Society 'How to ignite and sustain high firm growth has eluded both economic analysis and thought leaders in policy and business. Through its meticulous and thoughtful analysis, this important new book provides a tractable framework to guide policy to harness the growth and productivity potential of firms in the developing-country context.' David Audretsch Distinguished Professor and Director of the Institute for Development Strategies, Indiana University .

Download or read book Handbook of Regional and Urban Economics written by V. Henderson and published by Elsevier. This book was released on 2004-07-21 with total page 1081 pages. Available in PDF, EPUB and Kindle. Book excerpt: The new Handbook of Regional and Urban Economics: Cities and Geography reviews, synthesizes and extends the key developments in urban and regional economics and their strong connection to other recent developments in modern economics. Of particular interest is the development of the new economic geography and its incorporation along with innovations in industrial organization, endogenous growth, network theory and applied econometrics into urban and regional economics. The chapters cover theoretical developments concerning the forces of agglomeration, the nature of neighborhoods and human capital externalities, the foundations of systems of cities, the development of local political institutions, regional agglomerations and regional growth. Such massive progress in understanding the theory behind urban and regional phenomenon is consistent with on-going progress in the field since the late 1960’s. What is unprecedented are the developments on the empirical side: the development of a wide body of knowledge concerning the nature of urban externalities, city size distributions, urban sprawl, urban and regional trade, and regional convergence, as well as a body of knowledge on specific regions of the world—Europe, Asia and North America, both current and historical. The Handbook is a key reference piece for anyone wishing to understand the developments in the field.

Download or read book Urbanization and Economic Growth written by Vibhooti Shukla and published by Oxford University Press, USA. This book was released on 1996 with total page 508 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume brings together the late Vibhooti Shukla's writings on urbanization and economic development covering a vast canvas of interconnected issues. Her pioneering analysis with Indian data strongly indicates that the positive correlation between productivity and city sizes holds for India as well as for developed countries. In a well-knit framework, Dr Shukla addresses the problem of city size and the implications for industrial dispersal policies and the phenomenon of rural-urban migrations. She goes on to discuss the spatial dimension of rural non-farm employment, infrastructure investment and the government's role in these. It is her concern with policy issues which takes her to the subject of infrastructure investment, especially its spatial dimension. Dr Shukla demonstrates that better water supply, asphalt roads and increased drainage capacity can have a great impact on productivity. Her essays underline the fact that economic infrastructure is not enough. Social infrastructure, such as investment in health and education, not only creates a healthier, enlightened population but can result in higher industrial productivity.

Download or read book International Productivity Monitor written by OECD and published by OECD Publishing. This book was released on 2017-07-17 with total page 222 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 32nd issue of the International Productivity Monitor is a special issue produced in collaboration with the OECD. All articles published in this issue were selected from papers presented at the First Annual Conference of the OECD Global Forum on Productivity held in Lisbon, Portugal, July ...