Towards a location-sensitive policy for manufacturing in Karnataka

Narendar Pani ()

Journal of Social and Economic Development, 2015, vol. 17, issue 1, 50-65

Abstract: As states have moved to attract investments in the post-liberalisation era, two distinct patterns have emerged. Some states have focused on their largest city, while others have adopted a more dispersed strategy of attracting investment. Taking the experience of Karnataka, this paper looks at the consequences of concentrating on a single centre to boost industrialisation. Using insights from Krugman’s new economic geography, it first isolates the factors contributing to agglomeration to argue that Karnataka’s industrialisation has been Bengaluru centric. It goes on to identify the adverse consequences of concentrating industrial activity in a single city, and points to some of the challenges to moving towards a policy that is more sensitive to issues of location. Copyright Institute for Social and Economic Change 2015

Keywords: Manufacturing; Location; Karnataka; Bangalore; Industry (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1007/s40847-015-0001-8

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