Trade liberalization and local development in India: evidence from nighttime lights

Priyaranjan Jha and Karan Talathi ()
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Karan Talathi: University of California

Indian Economic Review, 2023, vol. 58, issue 1, No 5, 83 pages

Abstract: Abstract We study the impact of the Indian trade liberalization of 1991 on development at the district level using satellite nighttime lights per capita as a proxy for development. We find that on average, trade liberalization increased nighttime lights per capita, but there was considerable heterogeneity in the effect. In particular, districts in states with flexible labor laws, districts with better road networks, proximity to the coast, or higher female labor force participation rate seem to have benefited more than other districts.

Keywords: Trade liberalization; Nighttime lights; Per capita income; Tariffs; Labor laws (search for similar items in EconPapers)
JEL-codes: F13 F14 O11 O24 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s41775-023-00161-4

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