Industrial Activity in Indian States: The Role of Infrastructure

Jayasri Dutta (jayasridutta@hotmail.com), Nicholas Horsewood and Nicholas Vasilakos (circulars@fastmail.co.uk)

MPRA Paper from University Library of Munich, Germany

Abstract: We use panel data for fourteen Indian states to assess the influence of public infrastructure on industrial activity, namely productivity, employment, real wages and investment, at the state level and over the period 1974-1998. Our results indicate that the length of national highways has on average the greatest impact on each of the four measures of industrial activity. While the length of national highways and electricity generating capacity are found to be important determinants of state real wages and productivity, total highway length is a key variable in determining the level of investment in fixed capital in each state.

Keywords: Industrial activity; productivity; infrastructure; wages; investment (search for similar items in EconPapers)
JEL-codes: D24 H54 R12 (search for similar items in EconPapers)
Date: 2007-07
New Economics Papers: this item is included in nep-cwa, nep-eff and nep-lab
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