Coagglomeration of Formal and Informal Industry : Evidence from India

A large and growing informal sector is a major feature of developing countries. This paper analyzes coagglomeration patterns between formal and informal manufacturing enterprises in India. It studies (a) the causes underlying these patterns and (b) the positive externalities, if any, on the entry of...

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Main Author:	Mukim, Megha
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington DC 2013
Subjects:	Urban development business environment Competitive Advantage competitive advantageinformal sector Development Economics direct sales economic review Economic Review employment share entrepreneurial activity entrepreneurs entrepreneurship firm entry firm size fixed effects foreign investors formal sector formal sector employment formal sectors industry concentration informal sector informal activity informal enterprises informal firms informal sector employment Informal activity informal firm informal sector activity informal sectors labor market labor markets local business manufacturing enterprises market access medium enterprises policy research political economy Political Economy public goods public sector scale enterprises small and medium enterprises Small enterprises small firms SME social security trade liberalization transition economies village industries
Online Access:	http://hdl.handle.net/10986/16241

id	okr-10986-16241
recordtype	oai_dc
spelling	okr-10986-162412021-04-23T14:03:28Z Coagglomeration of Formal and Informal Industry : Evidence from India Mukim, Megha Urban development business environment Competitive Advantage competitive advantageinformal sector Development Economics direct sales direct sales economic review Economic Review employment share entrepreneurial activity entrepreneurs entrepreneurship firm entry firm size fixed effects foreign investors formal sector formal sector employment formal sectors industry concentration informal sector informal activity informal enterprises informal firms informal sector informal sector employment informal activity Informal activity informal enterprises informal firm informal sector informal sector employment informal sector activity informal sectors labor market labor markets local business local business manufacturing enterprises market access medium enterprises policy research political economy Political Economy public goods public sector scale enterprises scale enterprises small and medium enterprises Small enterprises small firms SME social security trade liberalization transition economies village industries A large and growing informal sector is a major feature of developing countries. This paper analyzes coagglomeration patterns between formal and informal manufacturing enterprises in India. It studies (a) the causes underlying these patterns and (b) the positive externalities, if any, on the entry of new firms. The analysis finds that buyer-supplier and technology linkages explain much of formal-informal coagglomeration. Also, within-industry coagglomeration matters mostly to small- and medium-sized formal firm births. Traditional measures of agglomeration remain important in explaining new industrial activity, whether in the formal or the informal sector. 2013-11-12T18:54:57Z 2013-11-12T18:54:57Z 2013-09-26 http://hdl.handle.net/10986/16241 en Policy Research Working Paper;No.6622 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	Urban development business environment Competitive Advantage competitive advantageinformal sector Development Economics direct sales direct sales economic review Economic Review employment share entrepreneurial activity entrepreneurs entrepreneurship firm entry firm size fixed effects foreign investors formal sector formal sector employment formal sectors industry concentration informal sector informal activity informal enterprises informal firms informal sector informal sector employment informal activity Informal activity informal enterprises informal firm informal sector informal sector employment informal sector activity informal sectors labor market labor markets local business local business manufacturing enterprises market access medium enterprises policy research political economy Political Economy public goods public sector scale enterprises scale enterprises small and medium enterprises Small enterprises small firms SME social security trade liberalization transition economies village industries
spellingShingle	Urban development business environment Competitive Advantage competitive advantageinformal sector Development Economics direct sales direct sales economic review Economic Review employment share entrepreneurial activity entrepreneurs entrepreneurship firm entry firm size fixed effects foreign investors formal sector formal sector employment formal sectors industry concentration informal sector informal activity informal enterprises informal firms informal sector informal sector employment informal activity Informal activity informal enterprises informal firm informal sector informal sector employment informal sector activity informal sectors labor market labor markets local business local business manufacturing enterprises market access medium enterprises policy research political economy Political Economy public goods public sector scale enterprises scale enterprises small and medium enterprises Small enterprises small firms SME social security trade liberalization transition economies village industries Mukim, Megha Coagglomeration of Formal and Informal Industry : Evidence from India
geographic_facet	South Asia India
relation	Policy Research Working Paper;No.6622
description	A large and growing informal sector is a major feature of developing countries. This paper analyzes coagglomeration patterns between formal and informal manufacturing enterprises in India. It studies (a) the causes underlying these patterns and (b) the positive externalities, if any, on the entry of new firms. The analysis finds that buyer-supplier and technology linkages explain much of formal-informal coagglomeration. Also, within-industry coagglomeration matters mostly to small- and medium-sized formal firm births. Traditional measures of agglomeration remain important in explaining new industrial activity, whether in the formal or the informal sector.
format	Publications & Research :: Policy Research Working Paper
author	Mukim, Megha
author_facet	Mukim, Megha
author_sort	Mukim, Megha
title	Coagglomeration of Formal and Informal Industry : Evidence from India
title_short	Coagglomeration of Formal and Informal Industry : Evidence from India
title_full	Coagglomeration of Formal and Informal Industry : Evidence from India
title_fullStr	Coagglomeration of Formal and Informal Industry : Evidence from India
title_full_unstemmed	Coagglomeration of Formal and Informal Industry : Evidence from India
title_sort	coagglomeration of formal and informal industry : evidence from india
publisher	World Bank, Washington DC
publishDate	2013
url	http://hdl.handle.net/10986/16241
_version_	1764432767878168576

Coagglomeration of Formal and Informal Industry : Evidence from India

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