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Location And Geographical Concentration Patterns Of Indian Manufacturing Industries: Evidence From The Rural And Urban Areas

Author

Listed:
  • SUGAM AGARWAL

    (Department of Humanities and Social Sciences, Indian Institute of Technology Ropar, Punjab, India)

  • SMRUTI RANJAN BEHERA

    (Department of Humanities and Social Sciences, Indian Institute of Technology Ropar, Punjab, India)

Abstract
This paper explores the spatial distribution and dependence of employment of workers and geographical concentration of 71 manufacturing industries by capturing the neighborhood effects across 637 districts in India, covering 10.54 million establishments using Economic Census (2013) data. Empirical results validate the spatial dependence of employment in rural and urban areas. However, results indicate substantial evidence of rural–urban employment disparity, especially in the northern states of India. Further, empirical results show that the effect of geographical concentration on highly localized industries seems to diverge in rural and urban areas. Besides, results exhibit that the higher employment industry has a low employment-to-establishment ratio (EER) at the establishment level in rural and urban areas. Nevertheless, using cartograms, we find that the spatial concentration of highly employable industries and the EER is highly skewed and asymmetrically concentrated in a few districts of only four to five states in India. Therefore, the results suggest that policymakers could focus mainly on industries with massive potential for employment opportunities at the regional level.

Suggested Citation

  • Sugam Agarwal & Smruti Ranjan Behera, 2024. "Location And Geographical Concentration Patterns Of Indian Manufacturing Industries: Evidence From The Rural And Urban Areas," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 69(03), pages 955-999, June.
    • Handle: RePEc:wsi:serxxx:v:69:y:2024:i:03:n:s0217590823500388
    DOI: 10.1142/S0217590823500388
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    Keywords

    Manufacturing industries; geographic concentration; rural–urban; district data; employment-to-establishment ratio; India;
    All these keywords.

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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