Market Access and Firm Performance: Evidence Based on GIS Analysis of Road Network and Manufacturing-Plant-Level Data from India

Somnath Sharma, Shashi Kant, Ranjeeta Mishra and Dina Azhgaliyeva
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Somnath Sharma: Asian Development Bank Institute
Shashi Kant: Asian Development Bank Institute
Ranjeeta Mishra: Asian Development Bank Institute
Dina Azhgaliyeva: Asian Development Bank Institute

No 1351, ADBI Working Papers from Asian Development Bank Institute

Abstract: We investigate whether better access to markets through an improved road network plays a role in improving firm profitability in India. We construct a district-level market access index using shapefiles of India's road network, district boundaries, and nightlight raster images and estimate the shortest driving distances for districts using the road network. Using the annual survey of industries data for India during 2001–2015, we show that market access through improved road connectivity resulted in a lower dispersion of ROA between 2001 and 2015 in India.

Keywords: India; road infrastructure; firm productivity; market access index; electricity deficit; road length (search for similar items in EconPapers)
JEL-codes: D22 D24 H54 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2022-12
New Economics Papers: this item is included in nep-eff, nep-sbm and nep-ure
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