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Do large agglomerations lead to economic growth? evidence from urban India

Sabyasachi Tripathi

MPRA Paper from University Library of Munich, Germany

Abstract: The cities and towns of India constitute the world’s second largest urban system besides contributing over 50 per cent of the country’s Gross Domestic Product (GDP). This phenomenon has been neglected by the existing studies and writings on urban India. By considering 59 large cities in India and employing new economic geography models, this paper investigates the relevant state and city-specific determinants of urban agglomeration. In addition, the spatial interactions between cities and the effect of urban agglomeration on India’s urban economic growth are estimated. The empirical results show that agglomeration economies are policy-induced as well as market-determined and offer evidence of the strong positive effect of agglomeration on urban economic growth and support for the non-linearity of the Core-Periphery (CP) model in India’s urban system.

Keywords: Urban Agglomeration; Urban Economic Growth; New Economic Geography; India (search for similar items in EconPapers)
JEL-codes: O18 R11 R12 (search for similar items in EconPapers)
Date: 2012-03-04
New Economics Papers: this item is included in nep-fdg, nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: DO LARGE AGGLOMERATIONS LEAD TO ECONOMIC GROWTH? EVIDENCE FROM URBAN INDIA (2013) Downloads
Working Paper: Do large agglomerations lead to economic growth: Evidence from Urban India (2012) Downloads
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