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Physical infrastructure and development of secondary sector:an econometric analysis for six states in India

Author

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  • Anupam Ghosh

    (IBS-Kolkata, India)

Abstract

While the importance of physical infrastructure in the development of secondary sector of the Indian economy is acknowledged, there is little or no empirical study to validate its role at the state-level. This paper presents a quantitative analysis of the relationship between development of physical infrastructure and the growth of secondary sector at the state level. Six states of the Indian Union, first three states being more developed industrially, and the other three states being industrially the least developed, are studied for this purpose. We discuss the important issue of whether all the states will be able to reap similar benefits from improved infrastructure or will the benefits be different for different states. Applying regression technique using factor scores, we show that while some states have reached the inflexion point in terms of physical infrastructure, others will gain significantly from infrastructure development. For some less-developed states, it is seen that even if infrastructure facilities are increased, the corresponding growth in output from secondary sector may not be encouraging, pointing to institutional and social factors that have a role to play in economic development.

Suggested Citation

  • Anupam Ghosh, 2011. "Physical infrastructure and development of secondary sector:an econometric analysis for six states in India," Journal of Developing Areas, Tennessee State University, College of Business, vol. 44(2), pages 207-216, January-M.
  • Handle: RePEc:jda:journl:vol.44:year:2011:issue2:pp:207-216
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    Cited by:

    1. Majumder, Rajarshi & Ghosh, Subhadip & Chatterjee, Bidisha, 2022. "Energy infrastructure in India: challenges and opportunities," MPRA Paper 120106, University Library of Munich, Germany.
    2. Ghosh, Prabir Kumar, 2020. "Nexus between Infrastructure and Economic Growth: An Empirical Study in the Post-Reform period in India," MPRA Paper 117709, University Library of Munich, Germany, revised May 2021.

    More about this item

    Keywords

    physical infrastructure; secondary sector; development of Indian economy;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General

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