Type | Journal Article - Studies in Business and Economics |
Title | Dynamic Externalities and Regional Manufacturing Growth: Evidence from India |
Author(s) | |
Volume | 12 |
Issue | 1 |
Publication (Day/Month/Year) | 2017 |
Page numbers | 185-201 |
URL | https://www.degruyter.com/downloadpdf/j/sbe.2017.12.issue-1/sbe-2017-0014/sbe-2017-0014.pdf |
Abstract | Using Annual Survey of Industries (ASI) dataset for 11 two-digit manufacturing industries and 20 states, this paper tests the relationship between dynamic agglomeration externalities and regional manufacturing growth for India. Three types of dynamic externalities have been proposed in the literature for explaining this relationship – Marshall-Arrow-Romer (MAR) specialization externalities, Jacobs’s diversity externalities, and Porter’s competition externalities. This paper examines the effect of these dynamic externalities on regional manufacturing employment and total factor productivity (TFP) growth for selected Indian industries between 2001-02 and 2011-12. |