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• W1502439119 abstract "This paper investigates whether industrial dispersal policy is more potent or the natural and agglomeration cost advantages are important in influencing locational choice of a firm. To carry out the analysis, an agglomeration measure given by Ellison and Glaeser is computed for 66 manufacturing industries in 21 major States of India for the year 1997-98. The measure indicates that at the 2-digit level, most Indian industries are excessively diffused. The instrumental variable analysis however shows that the industrial dispersal policy has no impact on the location decision of firms in most specifications. The locational choice seems to be guided by other factors. For industries which are relatively more agglomerated, it is the infrastructure, closeness to coast and labour market pooling has resulted in agglomeration, whereas for industries which are dispersed, it is the nature of the product produced, electricity tariff and per capita energy gap in the State inducing them to disperse, apart from a weak influence of dispersal policy. Analysis at a higher Aggregation also brings forth the role of infrastructure, electricity tariff and nature of product in influencing location choice." @default.
• W1502439119 created "2016-06-24" @default.
• W1502439119 creator A5069316069 @default.
• W1502439119 date "2011-09-01" @default.
• W1502439119 modified "2023-09-27" @default.
• W1502439119 title "What causes Agglomeration? - policy or infrastructure - A study of Indian manufacturing industry" @default.
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• W1502439119 hasPublicationYear "2011" @default.
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