Diversity Matters : The Economic Geography of Industry Location in India
How does economic geography influence
industrial production and thereby affect industrial location
decisions and the spatial distribution of development? For
manufacturing industry, what are the externalities that
matter, and to what extent? Are these externalities
spatially localized? The authors answer these questions by
analyzing the influence of economic geography on the cost
structure of manufacturing firms by firm size for eight
industry sectors in India. The economic geography factors
include market access and local and urban
externalities-which are concentrations of own-industry
firms, concentrations of buyer-supplier links, and
industrial diversity at the district (local) level. The
authors find that industrial diversity is the only economic
geography variable that has a significant, consistent, and
substantial cost-reducing effect for firms, particularly
small firms. This finding calls into question the
fundamental assumptions regarding localization economies and
raises further concerns on the industrial development
prospects of lagging regions in developing countries.
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Bibliographic Details
| Main Authors: |
Koo, Jun,
Lall, Somik V.,
Chakravorty, Sanjoy |
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| Language: | English
en_US |
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| Published: |
World Bank, Washington, DC
2003-06
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| Subjects: | ENVIRONMENTAL ASPECTS OF ECONOMIC DEVELOPMENT,
INDUSTRIAL DEVELOPMENT,
GEOGRAPHIC VARIABLES,
INDUSTRIAL PRODUCTION,
MANUFACTURING DEVELOPMENT,
ECONOMIC GEOGRAPHY,
COST OF PRODUCTION FACTORS,
MARKET ACCESS,
URBAN CONCENTRATION,
INDUSTRIAL DIVERSIFICATION,
LOCATION FACTORS ACCOUNTING,
ACCOUNTING PRINCIPLES,
BASIC METALS,
BOOK VALUE,
CAPACITY BUILDING,
CAPITAL GOODS,
CATCHMENT AREA,
COAL,
CONSUMERS,
DEPRECIATION,
ECONOMETRIC ANALYSIS,
ECONOMIC ACTIVITY,
ECONOMIC ANALYSIS,
ECONOMIC GROWTH,
ELASTICITIES,
ELASTICITY,
EMPIRICAL ANALYSIS,
EMPIRICAL RESEARCH,
EMPIRICAL STUDIES,
EMPLOYMENT,
EQUILIBRIUM,
EXTERNALITIES,
EXTERNALITY,
FACTOR DEMAND,
FIXED COSTS,
GROSS VALUE,
IMPERFECT COMPETITION,
INCREASING RETURNS,
INCREASING RETURNS TO SCALE,
INPUT PRICES,
INTERMEDIATE GOODS,
INVENTORY,
LARGE CITIES,
MANUFACTURING INDUSTRY,
METROPOLITAN AREAS,
MONOPOLISTIC COMPETITION,
OIL,
POLITICAL ECONOMY,
POPULATION DENSITY,
POSITIVE EFFECTS,
PRODUCERS,
PRODUCTION COSTS,
PRODUCTION FUNCTION,
PRODUCTIVITY,
PROFIT MAXIMIZING FIRMS,
PROFITABILITY,
PURCHASING POWER,
TOTAL OUTPUT,
TRANSACTION COSTS,
TRANSPORT,
URBANIZATION,
VALUABLE INFORMATION,
VALUE ADDED,
VEC,
WAGES,
WELFARE EFFECTS,
ACCOUNTING,
LOCATION FACTORS, |
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| Online Access: | http://documents.worldbank.org/curated/en/2003/06/2404559/diversity-matters-economic-geography-industry-location-india
https://hdl.handle.net/10986/18159
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