Somik V. Lall|Sanjoy Chakravorty
Industrial Location and Spatial Inequality: Theory and Evidence from India
World Bank Group
abstract authors argue spatial inequality industry location primary cause spatial income inequality developing nations study focuses understanding process spatial industrial variation identifying spatial factors cost implications firms factors influence location decisions new industrial units analysis two parts first authors examine contribution economic geography factors cost structure firms eight industry sectors show local industrial diversity one factor significant substantial costreducing effects show new private sector industrial investments india biased toward existing industrial coastal districts whereas state industrial investments deep decline structural reforms far less biased toward districts authors conclude structural reforms lead increased spatial inequality industrialization therefore income