Institutional Affiliation: The World Bank
|Highway to Success: The Impact of the Golden Quadrilateral Project for the Location and Performance of Indian Manufacturing|
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We investigate the impact of the Golden Quadrilateral (GQ) highway project on the Indian organized manufacturing sector using enterprise data. The GQ project upgraded the quality and width of 5,846 km of roads in India. We use a difference-in-difference estimation strategy to compare non-nodal districts based upon their distance from the highway system. We find several positive effects for non-nodal districts located 0-10 km from GQ that are not present in districts 10-50 km away, most notably higher entry rates and increases in plant productivity. These results are not present for districts located on another major highway system, the North-South East-West corridor (NS-EW). Improvements for portions of the NS-EW system were planned to occur at the same time as GQ but were subsequently del...
Published: Highway to Success: The Impact of the Golden Quadrilateral Project for the Location and Performance of Indian Manufacturing† Ejaz Ghani1, Arti Grover Goswami1 andWilliam R. Kerr2,* Article first published online: 20 APR 2015 DOI: 10.1111/ecoj.12207 © 2014 Royal Economic Society Issue Cover image for Vol. 125 Feature Issue The Economic Journal Early View (Online Version of Record published before inclusion in an issue) citation courtesy of
|Is India's Manufacturing Sector Moving Away From Cities?|
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This paper investigates the urbanization of the Indian manufacturing sector by combining enterprise data from formal and informal sectors. We find that plants in the formal sector are moving away from urban and into rural locations, while the informal sector is moving from rural to urban locations. While the secular trend for India's manufacturing urbanization has slowed down, the localized importance of education and infrastructure have not. Our results suggest that districts with better education and infrastructure have experienced a faster pace of urbanization, although higher urban-rural cost ratios cause movement out of urban areas. This process is associated with improvements in the spatial allocation of plants across urban and rural locations. Spatial location of plants has implicat...