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Road to productivity : effects of roads on total factor productivity in Indian manufacturing
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Kailthya, Subham and Kambhampati, Uma (2022) Road to productivity : effects of roads on total factor productivity in Indian manufacturing. Journal of Comparative Economics, 50 (1). pp. 174-195. doi:10.1016/j.jce.2021.08.001 ISSN 0147-5967.
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Official URL: https://doi.org/10.1016/j.jce.2021.08.001
Abstract
A denser road network lowers transport costs and stimulates manufacturing total factor productivity (TFP). The placement of roads, however, is likely to be non-random. For identification, we exploit cross-state variation in the strength of centre-state partisan alignment that asymmetrically affects road building in aligned states. Using panel data on manufacturing establishments in India from 1998 to 2012, we find that, a 1% increase in road density raises value-added TFP by about 0.25%, on average. A closer examination reveals that the effect varies by plant characteristics and road type. Younger establishments are more likely to gain from a denser road network with highways playing a prominent role. The results are robust to imperfections in the instrument and to other sensitivity checks.
Item Type: | Journal Article | ||||||||
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Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HE Transportation and Communications |
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Divisions: | Faculty of Social Sciences > Economics | ||||||||
Library of Congress Subject Headings (LCSH): | Transportation -- India, Infrastructure (Economics), Transportation -- Industrial capacity -- India, Industrial productivity -- India, Manufacturing industries -- India | ||||||||
Journal or Publication Title: | Journal of Comparative Economics | ||||||||
Publisher: | Elsevier | ||||||||
ISSN: | 0147-5967 | ||||||||
Official Date: | March 2022 | ||||||||
Dates: |
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Volume: | 50 | ||||||||
Number: | 1 | ||||||||
Page Range: | pp. 174-195 | ||||||||
DOI: | 10.1016/j.jce.2021.08.001 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Access rights to Published version: | Restricted or Subscription Access | ||||||||
Date of first compliant deposit: | 1 September 2021 | ||||||||
Date of first compliant Open Access: | 24 September 2023 | ||||||||
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