Publication:
Industrial Location in Developing Countries

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dc.contributor.authorDeichmann, Uwe
dc.contributor.authorLall, Somik V.
dc.contributor.authorRedding, Stephen J.
dc.contributor.authorVenables, Anthony J.
dc.date.accessioned2012-03-30T07:12:34Z
dc.date.available2012-03-30T07:12:34Z
dc.date.issued2008-09-01
dc.description.abstractDespite a diminishing role in industrial countries, the manufacturing sector continues to be an engine of economic growth in most developing countries. This article surveys the evidence on the determinants of industry location in developing countries. It also employs micro data for India and Indonesia to illustrate recent spatial dynamics of manufacturing relocation within urban agglomerations. Both theory and empirical evidence suggest that agglomeration benefits, market access, and infrastructure endowments in large cities outweigh the costs of congestion, higher wages, and land prices. Despite this evidence, many countries have tried to encourage industrial firms to locate in secondary cities or other lagging areas. Cross-country evidence suggests that fiscal incentives to do so rarely succeed. They appear to influence business location decisions among comparable locations, but the result may be a negative-sum game between regions and inefficiently low tax rates, which prevent public goods from being funded at sufficiently high levels. Relocation tends to be within and between agglomerations rather than from large cities to smaller cities or lagging regions. Rather than provide subsidies and tax breaks, policymakers should focus on streamlining laws and regulations to make the business environment more attractive.en
dc.identifier.citationWorld Bank Research Observer
dc.identifier.doi10.1596/4421
dc.identifier.issn1564-6971
dc.identifier.urihttps://hdl.handle.net/10986/4421
dc.publisherWorld Bank
dc.relation.ispartofseriesWorld Bank Research Observer
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo/
dc.subjecteconomic growth
dc.subjecteconomists
dc.subjectempirical evidence
dc.subjectempirical research
dc.subjectempirical studies
dc.subjectenvironments
dc.subjectequilibrium
dc.subjectintermediate goods
dc.subjectlabor costs
dc.subjectlabor markets
dc.subjectpollution
dc.subjectpopulation growth
dc.subjectproduction costs
dc.subjectpublic goods
dc.subjectpurchasing power
dc.subjecttax rates
dc.subjecttax revenue
dc.subjecttradeoffs
dc.subjectwage differentials
dc.subjectwages
dc.titleIndustrial Location in Developing Countriesen
dc.typeJournal Articleen
dc.typeArticle de journalfr
dc.typeArtículo de revistaes
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.date.doiregistration2025-05-06T11:07:02.878582Z
okr.doctypeJournal Article
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeTransport and ICT
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeEnvironment and Natural Resources
okr.identifier.report2
okr.language.supporteden
okr.pagenumber219
okr.pagenumber246
okr.pdfurlwbro_23_2_219.pdfen
okr.peerreviewAcademic Peer Review
okr.region.administrativeSouth Asia
okr.region.administrativeEast Asia and Pacific
okr.region.countryIndia
okr.region.countryIndonesia
okr.topicEnvironment
okr.topicTransport
okr.topicMacroeconomics and Economic Growth
okr.topicEnvironmental Economics and Policies
okr.topicTransport Economics Policy and Planning
okr.topicBanks and Banking Reform
okr.topicEconomic Theory and Research
okr.topicSocial Protections and Labor::Labor Policies
okr.volume23
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relation.isAuthorOfPublication.latestForDiscovery1bad1919-f70a-5855-b415-77aa5d72f22d
relation.isJournalIssueOfPublication1dc7f226-9870-430b-8770-e7d00bfb2007
relation.isJournalIssueOfPublication.latestForDiscovery1dc7f226-9870-430b-8770-e7d00bfb2007
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