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Industrial Location and Spatial Inequality: Theory and Evidence from India

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  • Somik V. Lall
  • Sanjoy Chakravorty

Abstract

We argue that spatial inequality of industry location is a primary cause of spatial income inequality in developing nations. We focus on understanding the process of spatial industrial variation—identifying the spatial factors that have cost implications for firms, and the factors that influence the location decisions of new industrial units. The analysis has two parts.

Suggested Citation

  • Somik V. Lall & Sanjoy Chakravorty, 2004. "Industrial Location and Spatial Inequality: Theory and Evidence from India," WIDER Working Paper Series RP2004-49, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2004-49
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    File URL: https://www.wider.unu.edu/sites/default/files/rp2004-049.pdf
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    References listed on IDEAS

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    1. Philip McCann, 1998. "The Economics of Industrial Location," Advances in Spatial Science, Springer, number 978-3-662-03702-7.
    2. Fujita,Masahisa & Thisse,Jacques-François, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9781107001411, September.
    3. Edward Feser & Edward Bergman, 2000. "National Industry Cluster Templates: A Framework for Applied Regional Cluster Analysis," Regional Studies, Taylor & Francis Journals, vol. 34(1), pages 1-19.
    4. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
    5. Sanjoy Chakravorty, 2000. "How Does Structural Reform Affect Regional Development? Resolving Contradictory Theory with Evidence from India," Economic Geography, Taylor & Francis Journals, vol. 76(4), pages 367-394, October.
    6. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    7. Lall, Somik V. & Funderburg, Richard & Yepes, Tito, 2003. "Location, concentration, and performance of economic activity in Brazil," Policy Research Working Paper Series 3268, The World Bank.
    8. Lall, Somik V. & Shalizi, Zmarak & Deichmann, Uwe, 2004. "Agglomeration economies and productivity in Indian industry," Journal of Development Economics, Elsevier, vol. 73(2), pages 643-673, April.
    9. Hanushek, Eric A & Song, Byung Nak, 1978. "The Dynamics of Postwar Industrial Location," The Review of Economics and Statistics, MIT Press, vol. 60(4), pages 515-522, November.
    10. Simon J. Evenett & Wolfgang Keller, 2002. "On Theories Explaining the Success of the Gravity Equation," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 281-316, April.
    11. J. Vernon Henderson, 2000. "The Effects of Urban Concentration on Economic Growth," NBER Working Papers 7503, National Bureau of Economic Research, Inc.
    12. Markusen, Ann & Hall, Peter & Campbell, Scott & Deitrick, Sabina, 1991. "The Rise of the Gunbelt: The Military Remapping of Industrial America," OUP Catalogue, Oxford University Press, number 9780195066487.
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    Citations

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    Cited by:

    1. Brijesh C. Purohit, 2012. "Health Policy, Inequity and Convergence in India," Working Papers 2012-074, Madras School of Economics,Chennai,India.
    2. Mark M. Akrofi & Benard A. A. Akanbang & Clement K. Abdallah, 2018. "Dimensions of Regional Inequalities in Ghana: Assessing Disparities in the Distribution of Basic Infrastructure Among Northern and Southern Districts," International Journal of Regional Development, Macrothink Institute, vol. 5(1), pages 1-25, December.
    3. Brijesh C. Purohit, 2015. "Health Policy, Inequity and Convergence in India," Working Papers id:7155, eSocialSciences.
    4. Nalin Kumar Ramaul & Pinki Ramaul, 2016. "Determinants of Industrial Location Choice in India: A Polychoric Principal Component Analysis Approach," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 14(1), pages 29-56, June.
    5. Fernandes, Ana M. & Sharma, Gunjan, 2012. "Together we stand ? agglomeration in Indian manufacturing," Policy Research Working Paper Series 6062, The World Bank.
    6. Brata, Aloysius Gunadi, 2009. "Does Geographic Factors Determine Local Economic Development?," MPRA Paper 15817, University Library of Munich, Germany.

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