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Place-based public investment in regional infrastructure, the locational choice of firms and regional performance: the case of India

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  • Nicholas Vasilakos
  • Alkis Theonas Pitelis
  • Nick Horsewood
  • Christos Pitelis

Abstract

We discuss conceptual reasons for and propose public investment in regional infrastructure as a hybrid form of a place-based regional industrial policy aiming to foster the regional economic activity of lagging regions. We present and empirically test a baseline model using data for 14 Indian regions/states over a period of 39 years. Our results show that place-based regional infrastructure investments, particularly in electricity-generating capacity and width-adjusted length of national highways, positively impact the relative number of firms operating in a region and help foster its economic performance.

Suggested Citation

  • Nicholas Vasilakos & Alkis Theonas Pitelis & Nick Horsewood & Christos Pitelis, 2023. "Place-based public investment in regional infrastructure, the locational choice of firms and regional performance: the case of India," Regional Studies, Taylor & Francis Journals, vol. 57(6), pages 1055-1068, June.
    • Handle: RePEc:taf:regstd:v:57:y:2023:i:6:p:1055-1068
    DOI: 10.1080/00343404.2022.2146666
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    Cited by:

    1. Luisa Alamá-Sabater & Yolanda de Llanos & Miguel Ángel Márquez & Emili Tortosa-Ausina, 2023. "Evaluating the spatial mismatch between population and factor endowments: The case of the European Union," Working Papers 2023/06, Economics Department, Universitat Jaume I, Castellón (Spain).

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