Geographic Concentration in Indian Manufacturing and Service Industries: Evidence from 1998 to 2013

21 Pages Posted: 4 Jan 2019

See all articles by Amrit Amirapu

Amrit Amirapu

Boston University - Department of Economics; University of Kent - Department of Economics

Rana Hasan

Asian Development Bank; University of Maryland - Department of Economics

Yi Jiang

Asian Development Bank

Alexander Klein

University of Kent - Canterbury Campus

Date Written: January 2019

Abstract

This paper uses a comprehensive new data source to document basic facts about geographic concentration among industries in India from 1998 to 2013. Unlike previous studies, our data allow us to accurately measure industrial concentration at the district level and cover manufacturing and services, as well as the formal and informal sectors. Our most striking finding is that average levels of industrial concentration fell dramatically between 1998 and 2013, driven by steep reductions in capital‐intensive manufacturing industries. We provide suggestive evidence that this increasing dispersion may be due to improvements in interregional transportation coupled with inefficient land management policies and limited labor mobility.

Keywords: India, industrial agglomeration, labor mobility, land management, regional inequality

JEL Classification: O14, O18, R11, R12

Suggested Citation

Amirapu, Amrit and Hasan, Rana and Jiang, Yi and Klein, Alexander, Geographic Concentration in Indian Manufacturing and Service Industries: Evidence from 1998 to 2013 (January 2019). Asian Economic Policy Review, Vol. 14, Issue 1, pp. 148-168, 2019. Available at SSRN: https://ssrn.com/abstract=3309824 or http://dx.doi.org/10.1111/aepr.12251

Amrit Amirapu (Contact Author)

Boston University - Department of Economics ( email )

270 Bay State Road
Boston, MA 02215
United States

University of Kent - Department of Economics ( email )

Keynes College
Canterbury, Kent CT2 7NP
United Kingdom

Rana Hasan

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States
808-944-7590 (Phone)
808-944-7399 (Fax)

Yi Jiang

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Alexander Klein

University of Kent - Canterbury Campus ( email )

Keynes College
Canterbury, Kent CT2 7NP
United Kingdom

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