Together We Stand? Agglomeration in Indian Manufacturing

61 Pages Posted: 20 Apr 2016

See all articles by Ana M. Fernandes

Ana M. Fernandes

World Bank - International Trade Division; World Bank

Gunjan Sharma

World Bank

Date Written: May 1, 2012

Abstract

This paper uses plant-level data to examine the impact of industrial and trade policy reforms on the geographic concentration of manufacturing industries in India from 1980 to 1999. First, the research shows that de-licensing and liberalization in foreign direct investment significantly reduced spatial concentration, but trade reforms had no significant effect on spatial concentration. Second, plants respond differently to policy reforms based on their size. Liberalization in foreign direct investment and de-licensing caused small plants to disperse, while trade liberalization had the opposite effect. However, for large plants trade liberalization led to lower spatial concentration.

Keywords: Economic Theory & Research, Water and Industry, Industrial Management, Emerging Markets, Labor Policies

Suggested Citation

Fernandes, Ana Margarida and Sharma, Gunjan, Together We Stand? Agglomeration in Indian Manufacturing (May 1, 2012). World Bank Policy Research Working Paper No. 6062, Available at SSRN: https://ssrn.com/abstract=2054360

Ana Margarida Fernandes (Contact Author)

World Bank - International Trade Division

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

World Bank ( email )

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

HOME PAGE: http://econ.worldbank.org/staff/afernandes

Gunjan Sharma

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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