Coagglomeration of formal and informal industry: evidence from India

Megha Mukim

No 6622, Policy Research Working Paper Series from The World Bank

Abstract: A large and growing informal sector is a major feature of developing countries. This paper analyzes coagglomeration patterns between formal and informal manufacturing enterprises in India. It studies (a) the causes underlying these patterns and (b) the positive externalities, if any, on the entry of new firms. The analysis finds that buyer-supplier and technology linkages explain much of formal-informal coagglomeration. Also, within-industry coagglomeration matters mostly to small- and medium-sized formal firm births. Traditional measures of agglomeration remain important in explaining new industrial activity, whether in the formal or the informal sector.

Keywords: Microfinance; Water and Industry; Small Scale Enterprise; Industrial Management; Urban Economic Development; Competition Policy (search for similar items in EconPapers)
Date: 2013-09-01
New Economics Papers: this item is included in nep-agr, nep-cse, nep-geo, nep-iue and nep-sbm
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Citations: View citations in EconPapers (6)

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Journal Article: Coagglomeration of formal and informal industry: evidence from India (2015)
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