Regional Diversity and Inclusive Growth in Indian Cities

49 Pages Posted: 20 Apr 2016

See all articles by Syed Ejaz Ghani

Syed Ejaz Ghani

World Bank

William Kerr

Harvard University - Entrepreneurial Management Unit

Ishani Tewari

Yale School of Management

Date Written: June 1, 2014

Abstract

This paper examines the employment growth of Indian districts from 2000 to 2010 in the manufacturing and services sectors. Specialization and diversity metrics that combine industries in both sectors are calculated and related to subsequent job growth. The analysis finds robust and consistent evidence that the diversity of industries in the district across the two sectors links to subsequent job growth. Somewhat surprisingly, this link finds its strongest expression outside typical stories about the role of diversity. For example, the growth is strongest in rural areas of districts and in districts with low population density. Diversity correlates with disproportionately higher employment growth in the informal sector and plays a role in generating employment in the district's smaller industries. These findings point toward the "inclusive" nature of diversity-driven growth and highlight a potentially important agenda item for policy makers concerned with inclusive development.

Keywords: Banks & Banking Reform, Transport Economics Policy & Planning, Water and Industry, Housing & Human Habitats, Labor Policies

Suggested Citation

Ghani, Ejaz and Kerr, William R. and Tewari, Ishani, Regional Diversity and Inclusive Growth in Indian Cities (June 1, 2014). World Bank Policy Research Working Paper No. 6919. Available at SSRN: https://ssrn.com/abstract=2449900

Ejaz Ghani (Contact Author)

World Bank ( email )

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

William R. Kerr

Harvard University - Entrepreneurial Management Unit ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Ishani Tewari

Yale School of Management ( email )

135 Prospect Street
P.O. Box 208200
New Haven, CT 06520-8200
United States

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