Brief

India's Spatial Development

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collection.link.171
https://openknowledge.worldbank.org/handle/10986/9402
collection.name.171
Economic Premise
dc.contributor.author
Desmet, Klaus
dc.contributor.author
Ghani, Ejaz
dc.contributor.author
O'Connell, Stephen
dc.contributor.author
Rossi-Hansberg, Esteban
dc.date.accessioned
2015-09-14T21:15:30Z
dc.date.available
2015-09-14T21:15:30Z
dc.date.issued
2013-09
dc.date.lastModified
2017-12-14T05:36:32Z
dc.description.abstract
This note examines the recent spatial development of India. Services, and to a lesser extent manufacturing, are increasingly concentrating in high-density clusters. This stands in contrast with the United States, where in the last decades services have tended to grow fastest in medium-density locations, such as Silicon Valley. Indias experience is not common to all fast-growing developing economies. The spatial growth pattern of China looks more similar to that of the United States than to that of India. What is preventing Indias medium-density cities from growing and taking full advantage of agglomeration forces? Future research should focus on identifying the barriers to growth in medium-density places. In the last two decades, the Indian economy has been growing at unprecedented rates, but that development has led to widening spatial disparities (Ghani 2010a). While some cities, such as Hyderabad, have become major high-tech hubs with world-class companies and real estate development reminiscent of Silicon Valley, many others remain mired in poverty and stagnation. Given the huge congestion in cities such as Mumbai or Kolkata, this seems to be a reasonable policy concern in the context of India. However, those cities also benefit from important agglomeration economies, so there is a need to analyze the trade-offs between the costs and benefits of economic density before articulating policy recommendations. Such an analysis should provide valuable insights into what types of spatial and regional policy interventions may be useful and effective. Compared to other countries at similar levels of development, Indias growth stems disproportionately from its burgeoning service sector (Ghani 2010b). The evidence of agglomeration in the U.S. service sector is in cities with densities of employment below 150 employees per square kilometer, while in India, evidence of agglomeration is found in cities with densities above this threshold. In other words, if the United States is used as the efficient benchmark, then 150 employees per square kilometer is the ideal density to take advantage of agglomeration economies. In India, however, these medium-density cities are the worst places. This suggests that the costs of congestion in India are either much smaller than in the United States, the agglomeration forces are much larger than in the United States, or that there are some frictions, policies, and a general lack of infrastructure in medium-density cities that prevent them from growing faster, therefore favoring concentration in high-density areas.
en
dc.identifier
http://documents.worldbank.org/curated/en/2013/09/18310359/indias-spatial-development
dc.identifier.uri
http://hdl.handle.net/10986/22615
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Economic premise;no. 124
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
ACCESS TO INFRASTRUCTURE
dc.subject
ACCOUNTING
dc.subject
CITIES
dc.subject
CONFIDENCE
dc.subject
DISTRICTS
dc.subject
EMPLOYMENT
dc.subject
HOUSEHOLDS
dc.subject
INDUSTRIAL PARK
dc.subject
INTERVENTIONS
dc.subject
LARGE CITIES
dc.subject
LAWS
dc.subject
MEGA CITIES
dc.subject
METROPOLITAN AREAS
dc.subject
SERVICE CLUSTERS
dc.subject
SERVICE SECTOR
dc.subject
TELECOMMUNICATION
dc.subject
TELECOMMUNICATION SERVICES
dc.subject
URBAN INFRASTRUCTURE
dc.subject
UTILITIES
dc.title
India's Spatial Development
en
dc.type
Brief
en
okr.date.disclosure
2013-09-27
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Brief
okr.docurl
http://documents.worldbank.org/curated/en/2013/09/18310359/indias-spatial-development
okr.globalpractice
Social, Urban, Rural and Resilience
okr.globalpractice
Macroeconomics and Fiscal Management
okr.googlescholar.linkpresent
yes
okr.identifier.externaldocumentum
000356161_20130927130844
okr.identifier.internaldocumentum
18310359
okr.identifier.report
81339
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/09/27/000356161_20130927130844/Rendered/PDF/813390BRI00Ind0Box0379834B00PUBLIC0.pdf
en
okr.region.administrative
South Asia
okr.region.country
India
okr.topic
Communities and Human Settlements :: Urban Slums Upgrading
okr.topic
Public Sector Corruption Anticorruption Measures
okr.topic
Urban Development :: City Development Strategies
okr.topic
Information and Communication Technologies :: ICT Policy and Strategies
okr.topic
Public Sector Development
okr.topic
Macroeconomics and Economic Growth :: Spatial and Local Economic Development
okr.unit
Economic Policy Debt Unit (PRMED)

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