Highway to Success: The Impact of the Golden Quadrilateral Project for the Location and Performance of Indian Manufacturing

41 Pages Posted: 7 Mar 2016

See all articles by Syed Ejaz Ghani

Syed Ejaz Ghani

World Bank

Arti Grover Goswami

World Bank

William Kerr

Harvard University - Entrepreneurial Management Unit

Multiple version iconThere are 3 versions of this paper

Date Written: March 2016

Abstract

We investigate the impact of transport infrastructure on the organisation and efficiency of manufacturing activity. The Golden Quadrilateral (GQ) project upgraded a central highway network in India. Manufacturing activity grew disproportionately along the network. These findings hold in straight‐line IV frameworks and are not present on a second highway that was planned to be upgraded at the same time as GQ but subsequently delayed. Both entrants and incumbents facilitated the output growth, with scaling among entrants being important. The upgrades facilitated better industrial sorting along the network and improved the allocative efficiency of industries initially positioned on GQ.

Suggested Citation

Ghani, Ejaz and Goswami, Arti Grover and Kerr, William R., Highway to Success: The Impact of the Golden Quadrilateral Project for the Location and Performance of Indian Manufacturing (March 2016). The Economic Journal, Vol. 126, Issue 591, pp. 317-357, 2016. Available at SSRN: https://ssrn.com/abstract=2742965 or http://dx.doi.org/10.1111/ecoj.12207

Ejaz Ghani (Contact Author)

World Bank ( email )

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

Arti Grover Goswami

World Bank ( email )

1818 H Street NW
Washington, DC 20433
United States

William R. Kerr

Harvard University - Entrepreneurial Management Unit ( email )

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

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