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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dig-okr-10986162412023-11-17T16:09:55Z Coagglomeration of Formal and Informal Industry : Evidence from India Mukim, Megha Urban development business environment Competitive Advantage competitive advantageinformal sector Development Economics direct sales 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 informal sector employment informal activity Informal activity informal enterprises informal firm informal sector informal sector employment informal sector activity informal sectors labor market labor markets local business local business manufacturing enterprises market access medium enterprises policy research political economy Political Economy public goods public sector scale enterprises scale enterprises small and medium enterprises Small enterprises small firms SME social security trade liberalization transition economies village industries 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. 2013-11-12T18:54:57Z 2013-11-12T18:54:57Z 2013-09-26 http://hdl.handle.net/10986/16241 en Policy Research Working Paper;No.6622 CC BY 3.0 IGO World Bank http://creativecommons.org/licenses/by/3.0/igo application/pdf text/plain World Bank, Washington DC |
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Banco Mundial |
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Estados Unidos |
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America del Norte |
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Biblioteca del Banco Mundial |
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topic |
Urban development business environment Competitive Advantage competitive advantageinformal sector Development Economics direct sales 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 informal sector employment informal activity Informal activity informal enterprises informal firm informal sector informal sector employment informal sector activity informal sectors labor market labor markets local business local business manufacturing enterprises market access medium enterprises policy research political economy Political Economy public goods public sector scale enterprises scale enterprises small and medium enterprises Small enterprises small firms SME social security trade liberalization transition economies village industries Urban development business environment Competitive Advantage competitive advantageinformal sector Development Economics direct sales 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 informal sector employment informal activity Informal activity informal enterprises informal firm informal sector informal sector employment informal sector activity informal sectors labor market labor markets local business local business manufacturing enterprises market access medium enterprises policy research political economy Political Economy public goods public sector scale enterprises scale enterprises small and medium enterprises Small enterprises small firms SME social security trade liberalization transition economies village industries |
spellingShingle |
Urban development business environment Competitive Advantage competitive advantageinformal sector Development Economics direct sales 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 informal sector employment informal activity Informal activity informal enterprises informal firm informal sector informal sector employment informal sector activity informal sectors labor market labor markets local business local business manufacturing enterprises market access medium enterprises policy research political economy Political Economy public goods public sector scale enterprises scale enterprises small and medium enterprises Small enterprises small firms SME social security trade liberalization transition economies village industries Urban development business environment Competitive Advantage competitive advantageinformal sector Development Economics direct sales 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 informal sector employment informal activity Informal activity informal enterprises informal firm informal sector informal sector employment informal sector activity informal sectors labor market labor markets local business local business manufacturing enterprises market access medium enterprises policy research political economy Political Economy public goods public sector scale enterprises scale enterprises small and medium enterprises Small enterprises small firms SME social security trade liberalization transition economies village industries Mukim, Megha Coagglomeration of Formal and Informal Industry : Evidence from India |
description |
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. |
topic_facet |
Urban development business environment Competitive Advantage competitive advantageinformal sector Development Economics direct sales 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 informal sector employment informal activity Informal activity informal enterprises informal firm informal sector informal sector employment informal sector activity informal sectors labor market labor markets local business local business manufacturing enterprises market access medium enterprises policy research political economy Political Economy public goods public sector scale enterprises scale enterprises small and medium enterprises Small enterprises small firms SME social security trade liberalization transition economies village industries |
author |
Mukim, Megha |
author_facet |
Mukim, Megha |
author_sort |
Mukim, Megha |
title |
Coagglomeration of Formal and Informal Industry : Evidence from India |
title_short |
Coagglomeration of Formal and Informal Industry : Evidence from India |
title_full |
Coagglomeration of Formal and Informal Industry : Evidence from India |
title_fullStr |
Coagglomeration of Formal and Informal Industry : Evidence from India |
title_full_unstemmed |
Coagglomeration of Formal and Informal Industry : Evidence from India |
title_sort |
coagglomeration of formal and informal industry : evidence from india |
publisher |
World Bank, Washington DC |
publishDate |
2013-09-26 |
url |
http://hdl.handle.net/10986/16241 |
work_keys_str_mv |
AT mukimmegha coagglomerationofformalandinformalindustryevidencefromindia |
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1787227418101022720 |