Do Large Agglomerations Lead to Economic Growth ? Evidence from Urban India
Published By: The Institute for Social and Economic Change | Published Date: 2012The 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 policyinduced
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 CorePeriphery
(CP) model in India’s urban system.
Author(s): Sabyasachi Tripati | Posted on: Jan 24, 2018 | Views() | Download (127)