Trade, Transport, and Territorial Development
The spatial distribution of economic activity is known to depend on trade costs, both international and domestic. This paper examines the interplay between these external and internal trade costs using a model of trade and production that is tested...
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World Bank, Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099431205252212181/IDU03622756009bfa0481e0aac80fa93523a16fe http://hdl.handle.net/10986/37477 |
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okr-10986-374772022-05-27T05:10:29Z Trade, Transport, and Territorial Development Dasgupta, Kunal Grover, Arti SPATIAL DISTRIBUTION OF ECONOMIC ACTIVITY GOLDEN QUADRILATERAL TRADE COSTS MANUFACTURING FIRMS TERRITORIAL DEVELOPMENT TRANSPORT INTERNATIONAL TRADE DOMESTIC TRADE COSTS FREIGHT COSTS SHIPPING COST The spatial distribution of economic activity is known to depend on trade costs, both international and domestic. This paper examines the interplay between these external and internal trade costs using a model of trade and production that is tested with the organized manufacturing sector data for India from 1989 to 2009. The analysis establishes that the trade liberalization episode of the early 1990s helped spread manufacturing away from the primary region (districts closest to ports) to the secondary region between 1994 and 2000. Such dispersion of activity away from the primary to the secondary region was driven by high internal trade costs that insulated manufacturers from import competition. This trend reversed post-2000, a period of massive decline in internal trade costs, attributed to the Golden Quadrilateral highway upgrades. During this period, the districts along the highway network in the secondary region gained market access and manufacturing activity, while those off the network lost. Irrespective of the period, or the nature of trade costs, manufacturing activity in the interior region (districts farthest from ports) remained depressed, thereby emphasizing the importance of complementary conditions in driving territorial development. 2022-05-26T19:22:52Z 2022-05-26T19:22:52Z 2022-05 Working Paper http://documents.worldbank.org/curated/en/099431205252212181/IDU03622756009bfa0481e0aac80fa93523a16fe http://hdl.handle.net/10986/37477 English Policy Research Working Paper;10066 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Policy Research Working Paper Publications & Research India |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
SPATIAL DISTRIBUTION OF ECONOMIC ACTIVITY GOLDEN QUADRILATERAL TRADE COSTS MANUFACTURING FIRMS TERRITORIAL DEVELOPMENT TRANSPORT INTERNATIONAL TRADE DOMESTIC TRADE COSTS FREIGHT COSTS SHIPPING COST |
| spellingShingle |
SPATIAL DISTRIBUTION OF ECONOMIC ACTIVITY GOLDEN QUADRILATERAL TRADE COSTS MANUFACTURING FIRMS TERRITORIAL DEVELOPMENT TRANSPORT INTERNATIONAL TRADE DOMESTIC TRADE COSTS FREIGHT COSTS SHIPPING COST Dasgupta, Kunal Grover, Arti Trade, Transport, and Territorial Development |
| geographic_facet |
India |
| relation |
Policy Research Working Paper;10066 |
| description |
The spatial distribution of economic
activity is known to depend on trade costs, both
international and domestic. This paper examines the
interplay between these external and internal trade costs
using a model of trade and production that is tested with
the organized manufacturing sector data for India from 1989
to 2009. The analysis establishes that the trade
liberalization episode of the early 1990s helped spread
manufacturing away from the primary region (districts
closest to ports) to the secondary region between 1994 and
2000. Such dispersion of activity away from the primary to
the secondary region was driven by high internal trade costs
that insulated manufacturers from import competition. This
trend reversed post-2000, a period of massive decline in
internal trade costs, attributed to the Golden Quadrilateral
highway upgrades. During this period, the districts along
the highway network in the secondary region gained market
access and manufacturing activity, while those off the
network lost. Irrespective of the period, or the nature of
trade costs, manufacturing activity in the interior region
(districts farthest from ports) remained depressed, thereby
emphasizing the importance of complementary conditions in
driving territorial development. |
| format |
Working Paper |
| author |
Dasgupta, Kunal Grover, Arti |
| author_facet |
Dasgupta, Kunal Grover, Arti |
| author_sort |
Dasgupta, Kunal |
| title |
Trade, Transport, and Territorial Development |
| title_short |
Trade, Transport, and Territorial Development |
| title_full |
Trade, Transport, and Territorial Development |
| title_fullStr |
Trade, Transport, and Territorial Development |
| title_full_unstemmed |
Trade, Transport, and Territorial Development |
| title_sort |
trade, transport, and territorial development |
| publisher |
World Bank, Washington, DC |
| publishDate |
2022 |
| url |
http://documents.worldbank.org/curated/en/099431205252212181/IDU03622756009bfa0481e0aac80fa93523a16fe http://hdl.handle.net/10986/37477 |
| _version_ |
1764487284523008000 |