Spatial Development and Agglomeration Economies in Services--Lessons from India

Although many studies consider the spatial pattern of manufacturing plants in developing countries, the role of services as a driver of urbanization and structural transformation is still not well understood. Using establishment level data from India, this paper helps narrow this gap by comparing and contrasting the spatial development of services with that in manufacturing. The study during the 2001-2010 period suggests that (i) services are more urbanized than manufacturing and are moving toward the urban and, by contrast, the organized manufacturing sector is moving away from urban cores to the rural periphery; (ii) manufacturing and services activities are highly correlated in spatial terms and exhibit a high degree of concentration in just a few states and industries; (iii) manufacturing in urban districts has a stronger tendency to locate closer to larger cities relative to services activity; (iv) infrastructure has a significant effect on manufacturing output, while human capital matters more for services activity; and lastly, (v) technology penetration, measured by the penetration of the Internet, is more strongly associated with services than manufacturing. Similar results hold when growth in activity is measured over the study period rather than levels. Manufacturing and services do not appear to crowd each other out of local areas.

Bibliographic Details

Main Authors:	Kerr, William R., Ghani, Ejaz, Goswami, Arti Grover
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2016-06
Subjects:	SKILLS, SANITATION, BUSINESS ACTIVITIES, POPULATION DENSITIES, DEVELOPMENT OF INFORMATION, E-MAIL, EQUIPMENT, ENTERPRISE DEVELOPMENT, CUSTOMER, COMMUNICATION TECHNOLOGIES, POLITICS, TELECOMMUNICATION, INFORMATION TECHNOLOGY, MATERIALS, PROFESSIONAL ORGANIZATIONS, NATURAL SCIENCES, TRANSPORT INFRASTRUCTURE, VEHICLES, DIGITIZATION, INFORMATION, SERVICES, TREND, MEDIUM ENTERPRISE, WEB PRESENCE, INFORMATION TECHNOLOGIES, MODELS, BUS ROUTE, TELECOMMUNICATION SERVICES, RETAIL TRADE, CITIES, LITERACY RATES, PLANNING, WEALTH, SOCIAL SCIENCES, HIGHWAY INVESTMENT, COMPUTER, OPEN ACCESS, TELEVISION, LITERACY, HARDWARE, KNOWLEDGE, ECONOMIC ACTIVITY, NEW TECHNOLOGIES, FRONT-END, INSTITUTIONS, LINK, LITERACY RATE, DATA, ROAD, COSTS, LOCAL AREA NETWORK, TRAINING, COMPUTERS, TELECOMMUNICATIONS, TRANSPORT, TRANSPORT ACTIVITIES, VOIP, MANUFACTURING INDUSTRY, PRODUCTIVITY, EXTERNALITIES, GLOBALIZATION, BUSINESS SERVICES, MARKETS, TRUE, WEB, LEARNING, RESEARCH, SUBURBS, TRANSPORT EQUIPMENT, ROUTE, CONSUMER DEMAND, BUSINESS SERVICE, RADIO, BROADBAND, CAPABILITIES, TELEPHONE, INFRASTRUCTURE, MANUFACTURING, TECHNOLOGY, BUS, INTERNATIONAL STANDARDS, R&D, ENERGY CONSUMPTION, HUMAN CAPITAL, TELECOM INFRASTRUCTURE, DRIVING, TRAVEL, POLICIES, SCIENCE, INTERNATIONAL TRADE, SOFTWARE, TECHNOLOGY DEVELOPMENT, RESULTS, LAND TRANSPORT, ELECTRICITY, BACK-OFFICE, RAW DATA, FAX, POPULATION DENSITY, MOTOR VEHICLES, PRIVATE SECTOR, RAILWAY, INDUSTRY PRODUCTIVITY, HIGHWAYS, POLICY, COMPUTER USAGE, PHYSICAL INFRASTRUCTURE, CENTRAL BUSINESS DISTRICTS, MEDIA, ROADS, ADMINISTRATION, RESULT, ECONOMIC DEVELOPMENT, MANUFACTURING INDUSTRIES, HIGHWAY, RAILWAYS, ICT, SECURITY, TECHNOLOGY INFRASTRUCTURE, BUSINESS, INVESTMENT, NETWORK, AGGLOMERATION ECONOMIES, RAILROADS, PERFORMANCE, PUBLIC ADMINISTRATION, TELECOM, LAN, FUEL, BUSINESS CENTERS, INNOVATION, ECONOMIC ACTIVITIES, INSTITUTION, INTRANET, FINANCIAL SUPPORT, INVESTMENTS, FUNDING, MISSING VALUES, COMMUNICATION, NEW TECHNOLOGY, LEGAL ISSUES, FLOW OF INFORMATION, CUSTOMERS, TRANSPORT COSTS, COMMUNICATION TECHNOLOGY, TECHNOLOGIES, ONLINE PRODUCTS, HIGHWAY PROJECT, PRICES, INNOVATIONS,
Online Access:	http://documents.worldbank.org/curated/en/2016/06/26543486/spatial-development-agglomeration-economies-services-lessons-india https://hdl.handle.net/10986/24658
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