Coagglomeration of Formal and Informal Industry : Evidence from India

A large and growing informal sector is a major feature of developing countries. This paper analyzes coagglomeration patterns between formal and informal manufacturing enterprises in India. It studies (a) the causes underlying these patterns and (b) the positive externalities, if any, on the entry of new firms. The analysis finds that buyer-supplier and technology linkages explain much of formal-informal coagglomeration. Also, within-industry coagglomeration matters mostly to small- and medium-sized formal firm births. Traditional measures of agglomeration remain important in explaining new industrial activity, whether in the formal or the informal sector.

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Bibliographic Details
Main Author: Mukim, Megha
Language:English
Published: World Bank, Washington DC 2013-09-26
Subjects:Urban development, business environment, Competitive Advantage, competitive advantageinformal sector, Development Economics, direct sales, economic review, Economic Review, employment share, entrepreneurial activity, entrepreneurs, entrepreneurship, firm entry, firm size, fixed effects, foreign investors, formal sector, formal sector employment, formal sectors, industry concentration, informal sector, informal activity, informal enterprises, informal firms, informal sector employment, Informal activity, informal firm, informal sector activity, informal sectors, labor market, labor markets, local business, manufacturing enterprises, market access, medium enterprises, policy research, political economy, Political Economy, public goods, public sector, scale enterprises, small and medium enterprises, Small enterprises, small firms, SME, social security, trade liberalization, transition economies, village industries,
Online Access:http://hdl.handle.net/10986/16241
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