Development : A Study of the Indian Manufacturing Industry
If infrastructure tends to generate spillover externalities, as has been the assumption in much of the development literature, one may reasonably look for evidence of such indirect effects in the accounts of manufacturing industries. Empirical supp...
| Main Authors: | , , |
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| Language: | English en_US |
| Published: |
Oxford University Press on behalf of the World Bank
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2006/05/17753352/development-study-indian-manufacturing-industry http://hdl.handle.net/10986/16443 |
| Summary: | If infrastructure tends to generate
spillover externalities, as has been the assumption in much
of the development literature, one may reasonably look for
evidence of such indirect effects in the accounts of
manufacturing industries. Empirical support for this
assumption has so far been ambiguous. This analysis of
Indian data, however, reveals substantial externality
effects from the states' infrastructure to
manufacturing productivity. The analysis separates the
direct effects of roads and electricity, as mediated by the
infrastructure services purchased by manufacturing
industries along with other intermediate inputs, from the
indirect effects, as measured by the impact of
infrastructure capacity on the Solow productivity residual.
In the 20 years from 1972 to 1992, growth of road and
electricity-generating capacity seems to have accounted for
nearly half the growth of the productivity residual of
India's registered manufacturing. |
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