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dc.contributor.authorLall, Somik V.en_US
dc.contributor.authorChakravorty, Sanjoyen_US
dc.description.abstractWe 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. First we examine the contribution of economic geography factors to the cost structure of firms in eight industry sectors and show that local industrial diversity is the one factor with significant and substantial cost reducing effects. We then show that new private sector industrial investments in India are biased toward existing industrial and coastal districts, whereas state industrial investments (in deep decline after structural reforms) are far less biased toward such districts. We conclude that structural reforms lead to increased spatial inequality in industrialization, and therefore, income.en_US
dc.publisherUNU-WIDER Helsinkien_US
dc.relation.ispartofseriesResearch Paper, UNU-WIDER, United Nations University (UNU) 2004/49en_US
dc.subject.keywordincome inequalityen_US
dc.subject.keywordeconomic geographyen_US
dc.subject.keywordindustrial locationen_US
dc.subject.stwRegionale Einkommensverteilungen_US
dc.titleIndustrial location and spatial inequality: Theory and evidence from Indiaen_US
dc.typeWorking Paperen_US
Appears in Collections:WIDER Research Papers, United Nations University (UNU)

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