Is India’s Manufacturing Sector Moving Away from Cities?
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World Bank, Washington, DC
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This paper investigates the urbanization
of the Indian manufacturing sector by combining enterprise
data from formal and informal sectors. It finds 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. Although the secular trend for
India's manufacturing urbanization has slowed down, the
localized importance of education and infrastructure has
not. The 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 implications for policy on investments in
education, infrastructure, and the livability of cities. The
high share of urbanization occurring in the informal sector
suggests that urbanization policies that contain
inclusionary approaches may be more successful in promoting
local development and managing its strains than those
focused only on the formal sector. Cities are evolving in
India from places of goods production to forges of human
capital and coping mechanisms for survival.
Palabras clave
ACCOUNTING, ADB, AGGLOMERATION ECONOMIES, AGRICULTURAL DEVELOPMENT, BUILDING REGULATIONS, CENSUSES, CHANGE IN POPULATION, DEBT, DEVELOPING COUNTRIES, DEVELOPMENT POLICY, ECONOMETRICS, ECONOMIC GROWTH, ECONOMIC IMPLICATIONS, ECONOMIC POLICIES, ECONOMIES IN TRANSITION, EIB, EMPLOYMENT, ENTREPRENEURSHIP, EXTERNALITIES, HOUSEHOLD INCOME, HOUSING, HOUSING ECONOMICS, HUMAN CAPITAL, IMPORTANCE OF EDUCATION, INDUSTRIALIZATION, INFORMATION SYSTEM, INFRASTRUCTURE INVESTMENT, INFRASTRUCTURE SERVICES, INTENSIVE INDUSTRIES, INVESTMENTS IN EDUCATION, JOB CREATION, LABOR COSTS, LABOR FORCE, LABOR MARKET, LABOR MARKETS, LACK OF INFORMATION, LAND MARKETS, LAND PRICES, LAND SUPPLY, LAND USE, LAND USE REGULATIONS, LAND VALUE, LOCAL DEVELOPMENT, LOCAL GOVERNMENT, LOCATION DECISIONS, METROPOLITAN AREAS, METROPOLITAN CITIES, MIGRATION, MUNICIPAL REGULATIONS, NATIONAL COUNCIL, PACE OF URBANIZATION, POLICY DISCUSSIONS, POLICY MAKERS, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POLITICAL TURMOIL, POLLUTION, POPULATION CENSUS, POPULATION CHANGE, POPULATION STUDIES, PRODUCTIVITY, PROGRESS, RADIO, RESPECT, ROADS, RURAL AREAS, RURAL POVERTY, SAFE DRINKING WATER, SAFE WATER, SANITATION, SECONDARY EDUCATION, SKILLED WORKERS, SPATIAL DISTRIBUTION, SPATIAL DISTRIBUTION OF POPULATION, SPATIAL MOBILITY, STATISTICAL ANALYSES, SUBDIVISIONS, TELEVISION, TOWNSHIPS, TRANSPORT, TRANSPORTATION, UNITED NATIONS POPULATION DIVISION, URBAN, URBAN AREA, URBAN AREAS, URBAN CENTRES, URBAN CONCENTRATION, URBAN DEVELOPMENT, URBAN ECONOMICS, URBAN EMPLOYMENT, URBAN GROWTH, URBAN INFRASTRUCTURE, URBAN LAND, URBAN MOVEMENTS, URBAN PLANS, URBAN POPULATION, URBAN ZONES, URBANIZATION, URBANIZATION PROCESS, UTILITIES, WAGE RATES, WAGES, WORKFORCE, WORKING POPULATION, ZONING REGULATIONS