LOCATION AND GEOGRAPHICAL CONCENTRATION PATTERNS OF INDIAN MANUFACTURING INDUSTRIES: EVIDENCE FROM THE RURAL AND URBAN AREAS

Sugam Agarwal () and Smruti Ranjan Behera
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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

The Singapore Economic Review (SER), 2024, vol. 69, issue 03, 955-999

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.

Keywords: Manufacturing industries; geographic concentration; rural–urban; district data; employment-to-establishment ratio; India (search for similar items in EconPapers)
JEL-codes: L60 R10 R12 R58 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1142/S0217590823500388

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