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Regional Performance and Characteristics of Indian Manufacturing Industry

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  • Uma Kambhampati
  • Philip Mccann

Abstract

Kambhampati U. and McCann P. (2007) Regional performance and characteristics of Indian manufacturing industry, Regional Studies 41, 281-294. This paper investigates the regional characteristics of Indian manufacturing industry. Its aim is to assess whether geography plays any major role in determining the performance or characteristics of Indian manufacturing firms, and in order to do this, it presents the results of cross-section regressions estimated on the basis of a balanced sample of 1607 firms across the 30 Indian states. The results suggest that firm performance and characteristics are related to many of the expected industrial organization variables. However, there is also evidence of significant region-state influences on both the performance and characteristics of Indian manufacturing industry. As such, the results demonstrate that analyses which focus solely on standard non-spatial industrial organization variables will fail to explain much of the cross-sectional variation in firm performance and characteristics. In particular, while there are no systematic simple centre-periphery variations in the Indian regional economic system, there is evidence to suggest that industrial spatial concentration, regional specialization, and regional market size play a key role in determining the performance and characteristics of Indian manufacturing industry. Kambhampati U. et McCann P. (2007) La performance et les caracteristiques regionales de l'industrie indienne, Regional Studies 41, 281-294. Cet article cherche a examiner les caracteristiques regionales de l'industrie indienne. On cherche a evaluer si, oui ou non, la geographie joue aucun role primordial dans la determination de la performance ou des caracteristiques des entreprises industrielles indiennes. Ainsi, on presente les resultats des regressions transversales, estimees a partir d'un echantillon equilibre de 1.607 entreprises a travers 30 etats indiens. Les resultats laissent supposer que la performance et les caracteristiques des entreprises se rapportent a plusieurs des variables de l'organisation industrielle prevues. Cependant, tout indique que les etats-regions influent a la fois sur la performance et les caracteristiques de l'industrie indienne. Par consequent, les resultats montrent que les analyses qui ne portent que sur les variables types non geographiques de l'organisation industrielle ne ressiront a expliquer beaucoup de la variation transversale ni de la performance, ni des caracteristiques des entreprises. Tandis qu'il n'y a pas de variations simples systematiques du type centre-peripherie au sein du systeme economique regional indien, il est a noter que la concentration geographique industrielle, la specialisation regionale et la taille du marche jouent un role primordial dans la determination de la performance et des caracteristiques de l'industrie indienne. Inde Regions Industrie Kambhampati U. und McCann P. (2007) Regionale Leistung und Merkmale der produzierenden Industrie Indiens, Regional Studies 41, 281-294. In diesem Beitrag untersuchen wir die regionalen Merkmale der produzierenden Industrie Indiens. Unser Ziel ist die Untersuchung, ob die Geografie fur die Leistung oder die Merkmale der produzierenden Unternehmen Indiens eine wichtige Rolle spielt. Hierfur stellen wir die Ergebnisse sektionsubergreifender Regressionen vor, die anhand einer ausgewogenen Stichprobe aus 1607 Firmen in den 30 indischen Staaten geschatzt wurden. Unsere Ergebnisse legen den Schluss nahe, dass die Leistung und Merkmale der Unternehmen mit vielen der erwarteten Variablen der industriellen Organisation zusammenhangen. Es gibt jedoch auch Anzeichen dafur, dass die Bundesstaaten einen erheblichen Einfluss auf Leistung und Merkmale des produzierenden Gewerbes in Indien ausuben. Daher zeigen unsere Ergebnisse, dass sich Analysen, die sich ausschliesslich auf nicht raumliche Standardvariablen der industriellen Organisation konzentrieren, nicht zur Erklarung der meisten sektionsubergreifenden Abweichungen in der Leistung und den Merkmalen der Firmen eignen. Insbesondere liegen im regionalen Wirtschaftssystem Indiens zwar keine systematischen, einfachen Mitte-Peripherie-Abweichungen vor, doch es weist einiges darauf hin, dass die raumliche Konzentration der Industrie, die regionale Spezialisierung und die Grosse des Regionalmarkts eine entscheidende Rolle fur die Leistung und die Merkmale der produzierenden Industrie Indiens spielen. Indien Regionen Produktion Kambhampati U. y McCann P. (2007) Desempeno y caracteristicas regionales de la industria manufacturera de la India, Regional Studies 41, 281-294. En este articulo investigamos las caracteristicas regionales de la industria manufacturera de la India. Nuestro objetivo es evaluar si la geografia desempena un rol importante a la hora de determinar el desempeno o las caracteristicas de las empresas manufactureras de la India. Para ello presentamos los resultados de las regresiones transversales calculadas segun una muestra equilibrada de 1.607 empresas en los 30 estados del pais. Nuestros resultados indican que el desempeno y las caracteristicas de las empresas estan vinculados a muchas de las variables previstas de la organizacion industrial. Sin embargo, tambien observamos las importantes influencias estatales y regionales tanto en el desempeno como en las caracteristicas de la industria manufacturera de la India. Por tanto, nuestros resultados demuestran que los analisis que se centran unicamente en las variables estandares no espaciales de la organizacion industrial no sirven como explicacion para muchas de las variaciones transversales en el desempeno y las caracteristicas de las empresas. Si bien es cierto que en el sistema economico regional de la India no hay variaciones sencillas y sistematicas en las variaciones de centro-periferia, existen pruebas que indican que la concentracion espacial industrial, la especializacion regional y el tamano del mercado regional desempenan un papel fundamental para determinar el desempeno y las caracteristicas de la industria manufacturera de la India. India Regiones Industria manufacturera

Suggested Citation

  • Uma Kambhampati & Philip Mccann, 2007. "Regional Performance and Characteristics of Indian Manufacturing Industry," Regional Studies, Taylor & Francis Journals, vol. 41(3), pages 281-294.
    • Handle: RePEc:taf:regstd:v:41:y:2007:i:3:p:281-294
    DOI: 10.1080/00343400701282111
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    References listed on IDEAS

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    1. Timothy Besley & Robin Burgess, 2004. "Can Labor Regulation Hinder Economic Performance? Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 91-134.
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    1. Ma, Xufei & Ding, Zhujun & Yuan, Lin, 2016. "Subnational institutions, political capital, and the internationalization of entrepreneurial firms in emerging economies," Journal of World Business, Elsevier, vol. 51(5), pages 843-854.
    2. Harada, Tsutomu & Hiramine, Yoshiki, 2021. "The Determinants of Competitive Advantage: Capability vs. Industry Structure," TDB-CAREE Discussion Paper Series E-2021-06, Teikoku Databank Center for Advanced Empirical Research on Enterprise and Economy, Graduate School of Economics, Hitotsubashi University.
    3. Tomokazu Arita & Chie Iguchi & Philip McCann, 2011. "Foreign Direct Investment, Knowledge Assets and the Economic Geography of Growth in the Asian BRIICS Countries," Chapters, in: Robert Stimson & Roger R. Stough & Peter Nijkamp (ed.), Endogenous Regional Development, chapter 9, Edward Elgar Publishing.
    4. Joshua Drucker, 2009. "Trends in Regional Industrial Concentration in the United States," Working Papers 09-06, Center for Economic Studies, U.S. Census Bureau.

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    Keywords

    India; Regions; Manufacturing;
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