Work

Coagglomeration of formal and informal industry: evidence from India

Year: 2014

Type: article

Abstract: A large and growing informal sector is a major feature of developing countries. I analyze coagglomeration patterns between formal and informal manufacturing enterprises in India, and study (i) the causes underlying these patterns, and (ii) the positive externalities, if any, on the entry of new firms. I find that buyer–seller and technology linkages explain much of formal–informal coagglomeration. I also find that this sectoral, within-industry, coagglomeration matters mostly to small- and medium-sized formal firms births. Traditional measures of agglomeration remain important in explaining new industrial activity, whether in the formal or the informal sectors.

Source: Journal of Economic Geography

DOI: 10.1093/jeg/lbu020

Author: Megha Mukim

Institution: World Bank

Language: English

Topic: Regional Economics and Spatial Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $4,638