Title

Place-based public investment in regional infrastructure, the locational choice of firms and regional performance: the case of India.

Authors

Vasilakos, Nicholas; Pitelis, Alkis Theonas; Horsewood, Nick; Pitelis, Christos

Abstract

We discuss conceptual reasons for and propose public investment in regional infrastructure as a hybrid form of a place-based regional industrial policy aiming to foster the regional economic activity of lagging regions. We present and empirically test a baseline model using data for 14 Indian regions/states over a period of 39 years. Our results show that place-based regional infrastructure investments, particularly in electricity-generating capacity and width-adjusted length of national highways, positively impact the relative number of firms operating in a region and help foster its economic performance.

Subjects

PUBLIC investments; ECONOMIC development; MANUFACTURING industries; ELECTRICITY; INVESTMENTS

Publication

Regional Studies, 2023, Vol 57, Issue 6, p1055

ISSN

0034-3404

Publication type

Academic Journal

DOI

10.1080/00343404.2022.2146666