Kerr, William R.Ghani, EjazGoswami, Arti Grover2016-07-112016-07-112016-06https://hdl.handle.net/10986/24658Although many studies consider the spatial pattern of manufacturing plants in developing countries, the role of services as a driver of urbanization and structural transformation is still not well understood. Using establishment level data from India, this paper helps narrow this gap by comparing and contrasting the spatial development of services with that in manufacturing. The study during the 2001-2010 period suggests that (i) services are more urbanized than manufacturing and are moving toward the urban and, by contrast, the organized manufacturing sector is moving away from urban cores to the rural periphery; (ii) manufacturing and services activities are highly correlated in spatial terms and exhibit a high degree of concentration in just a few states and industries; (iii) manufacturing in urban districts has a stronger tendency to locate closer to larger cities relative to services activity; (iv) infrastructure has a significant effect on manufacturing output, while human capital matters more for services activity; and lastly, (v) technology penetration, measured by the penetration of the Internet, is more strongly associated with services than manufacturing. Similar results hold when growth in activity is measured over the study period rather than levels. Manufacturing and services do not appear to crowd each other out of local areas.en-USCC BY 3.0 IGOSKILLSSANITATIONBUSINESS ACTIVITIESPOPULATION DENSITIESDEVELOPMENT OF INFORMATIONE-MAILEQUIPMENTENTERPRISE DEVELOPMENTCUSTOMERCOMMUNICATION TECHNOLOGIESPOLITICSTELECOMMUNICATIONINFORMATION TECHNOLOGYMATERIALSPROFESSIONAL ORGANIZATIONSNATURAL SCIENCESTRANSPORT INFRASTRUCTUREVEHICLESDIGITIZATIONINFORMATIONSERVICESTRENDMEDIUM ENTERPRISEWEB PRESENCEINFORMATION TECHNOLOGIESMODELSBUS ROUTETELECOMMUNICATION SERVICESRETAIL TRADECITIESLITERACY RATESPLANNINGWEALTHSOCIAL SCIENCESHIGHWAY INVESTMENTCOMPUTEROPEN ACCESSTELEVISIONLITERACYHARDWAREKNOWLEDGEECONOMIC ACTIVITYNEW TECHNOLOGIESFRONT-ENDINSTITUTIONSLINKLITERACY RATEDATAROADCOSTSLOCAL AREA NETWORKTRAININGCOMPUTERSTELECOMMUNICATIONSTRANSPORTTRANSPORT ACTIVITIESVOIPMANUFACTURING INDUSTRYPRODUCTIVITYEXTERNALITIESGLOBALIZATIONBUSINESS SERVICESMARKETSTRUEWEBLEARNINGRESEARCHSUBURBSTRANSPORT EQUIPMENTROUTECONSUMER DEMANDBUSINESS SERVICERADIOBROADBANDCAPABILITIESTELEPHONEINFRASTRUCTUREMANUFACTURINGTECHNOLOGYBUSINTERNATIONAL STANDARDSR&DENERGY CONSUMPTIONHUMAN CAPITALTELECOM INFRASTRUCTUREDRIVINGTRAVELPOLICIESSCIENCEINTERNATIONAL TRADESOFTWARETECHNOLOGY DEVELOPMENTRESULTSLAND TRANSPORTELECTRICITYBACK-OFFICERAW DATAFAXPOPULATION DENSITYMOTOR VEHICLESPRIVATE SECTORRAILWAYINDUSTRY PRODUCTIVITYHIGHWAYSPOLICYCOMPUTER USAGEPHYSICAL INFRASTRUCTURECENTRAL BUSINESS DISTRICTSMEDIAROADSADMINISTRATIONRESULTECONOMIC DEVELOPMENTMANUFACTURING INDUSTRIESHIGHWAYRAILWAYSICTSECURITYTECHNOLOGY INFRASTRUCTUREBUSINESSINVESTMENTNETWORKAGGLOMERATION ECONOMIESRAILROADSPERFORMANCEPUBLIC ADMINISTRATIONTELECOMLANFUELBUSINESS CENTERSINNOVATIONECONOMIC ACTIVITIESINSTITUTIONINTRANETFINANCIAL SUPPORTINVESTMENTSFUNDINGMISSING VALUESCOMMUNICATIONNEW TECHNOLOGYLEGAL ISSUESFLOW OF INFORMATIONCUSTOMERSTRANSPORT COSTSCOMMUNICATION TECHNOLOGYTECHNOLOGIESONLINE PRODUCTSHIGHWAY PROJECTPRICESINNOVATIONSWorking PaperWorld Bank10.1596/1813-9450-7741