Highways and Spatial Location within Cities : Evidence from India

The authors investigate the impact of the golden quadrilateral (GQ) highway project on the spatial organization and efficiency of manufacturing activity. The GQ project upgraded the quality and width of 3,633 miles of roads in India. The authors us...

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Main Authors: Ghani, Ejaz, Goswami, Arti Grover, Kerr, William R.
Format: Journal Article
Language:English
Published: Published by Oxford University Press on behalf of the World Bank 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/911911565607517844/Highways-and-Spatial-Location-within-Cities-Evidence-from-India
http://hdl.handle.net/10986/32235
id okr-10986-32235
recordtype oai_dc
spelling okr-10986-322352021-05-25T10:54:42Z Highways and Spatial Location within Cities : Evidence from India Ghani, Ejaz Goswami, Arti Grover Kerr, William R. ROADS HIGHWAY NETWORK SPATIAL ECONOMICS BUSINESS CLUSTER INFRASTRUCTURE INVESTMENT FIRM ENTRY FIRM PRODUCTIVITY URBANIZATION The authors investigate the impact of the golden quadrilateral (GQ) highway project on the spatial organization and efficiency of manufacturing activity. The GQ project upgraded the quality and width of 3,633 miles of roads in India. The authors use a difference-in-difference estimation strategy to compare non-nodal districts based upon their distance from the highway system. For the organized portion of the manufacturing sector, we find that GQ led to improvements in both urban and rural areas of non-nodal districts located 0 to 10 kilometers from GQ. These higher entry rates and increases in plant productivity are not present in districts 10 to 50 kilometers away. The entry effects are stronger in rural areas of districts, but the differences between urban and rural areas are modest relative to the overall effect. For the unorganized sector, we do not find material effects from the GQ upgrades in either setting. These findings suggest that in the time frames that we can consider the first five to seven years during and after upgrades, the economic effects of major highway projects contribute modestly to the migration of the organized sector out of Indian cities but are unrelated to the increased urbanization of the unorganized sector. 2019-08-13T18:37:48Z 2019-08-13T18:37:48Z 2016-04-10 Journal Article http://documents.worldbank.org/curated/en/911911565607517844/Highways-and-Spatial-Location-within-Cities-Evidence-from-India World Bank Economic Review http://hdl.handle.net/10986/32235 English CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article 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 ROADS
HIGHWAY NETWORK
SPATIAL ECONOMICS
BUSINESS CLUSTER
INFRASTRUCTURE INVESTMENT
FIRM ENTRY
FIRM PRODUCTIVITY
URBANIZATION
spellingShingle ROADS
HIGHWAY NETWORK
SPATIAL ECONOMICS
BUSINESS CLUSTER
INFRASTRUCTURE INVESTMENT
FIRM ENTRY
FIRM PRODUCTIVITY
URBANIZATION
Ghani, Ejaz
Goswami, Arti Grover
Kerr, William R.
Highways and Spatial Location within Cities : Evidence from India
geographic_facet South Asia
India
description The authors investigate the impact of the golden quadrilateral (GQ) highway project on the spatial organization and efficiency of manufacturing activity. The GQ project upgraded the quality and width of 3,633 miles of roads in India. The authors use a difference-in-difference estimation strategy to compare non-nodal districts based upon their distance from the highway system. For the organized portion of the manufacturing sector, we find that GQ led to improvements in both urban and rural areas of non-nodal districts located 0 to 10 kilometers from GQ. These higher entry rates and increases in plant productivity are not present in districts 10 to 50 kilometers away. The entry effects are stronger in rural areas of districts, but the differences between urban and rural areas are modest relative to the overall effect. For the unorganized sector, we do not find material effects from the GQ upgrades in either setting. These findings suggest that in the time frames that we can consider the first five to seven years during and after upgrades, the economic effects of major highway projects contribute modestly to the migration of the organized sector out of Indian cities but are unrelated to the increased urbanization of the unorganized sector.
format Journal Article
author Ghani, Ejaz
Goswami, Arti Grover
Kerr, William R.
author_facet Ghani, Ejaz
Goswami, Arti Grover
Kerr, William R.
author_sort Ghani, Ejaz
title Highways and Spatial Location within Cities : Evidence from India
title_short Highways and Spatial Location within Cities : Evidence from India
title_full Highways and Spatial Location within Cities : Evidence from India
title_fullStr Highways and Spatial Location within Cities : Evidence from India
title_full_unstemmed Highways and Spatial Location within Cities : Evidence from India
title_sort highways and spatial location within cities : evidence from india
publisher Published by Oxford University Press on behalf of the World Bank
publishDate 2019
url http://documents.worldbank.org/curated/en/911911565607517844/Highways-and-Spatial-Location-within-Cities-Evidence-from-India
http://hdl.handle.net/10986/32235
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