The Spatial Development of India

20 Pages Posted: 20 Apr 2016

See all articles by Klaus Desmet

Klaus Desmet

Southern Methodist University (SMU); Centre for Economic Policy Research (CEPR)

Syed Ejaz Ghani

World Bank

Stephen A. O'Connell

Swarthmore College

Esteban Rossi-Hansberg

Princeton University - Department of Economics; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: May 1, 2012

Abstract

In the last two decades the Indian economy has been growing unabatedly, with memories of the Hindu rate of growth rapidly fading. But this unprecedented growth has also resulted in widening spatial disparities. While cities such as Hyderabad have emerged as major clusters of high development, many rural areas have been left behind with little development benefits accruing to them. India's mega-cities have continued to grow. This situation raises a number of important policy questions. Should India aim to spread development more equally across space? Are India's cities becoming too large? Should the government invest in infrastructure in the large cities to reduce congestion or in medium-sized locations to facilitate the emergence of new economic clusters? What are the tradeoffs between agglomeration economies and congestion costs? How different is India?s experience compared with China and USA?

Keywords: Labor Markets, Urban Slums Upgrading, Housing & Human Habitats, E-Business, Labor Policies

Suggested Citation

Desmet, Klaus and Ghani, Ejaz and O'Connell, Stephen A. and Rossi-Hansberg, Esteban Alejandro, The Spatial Development of India (May 1, 2012). World Bank Policy Research Working Paper No. 6060. Available at SSRN: https://ssrn.com/abstract=2051343

Klaus Desmet (Contact Author)

Southern Methodist University (SMU) ( email )

6212 Bishop Blvd.
Dallas, TX 75275
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Ejaz Ghani

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Stephen A. O'Connell

Swarthmore College

Esteban Alejandro Rossi-Hansberg

Princeton University - Department of Economics ( email )

Princeton, NJ
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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