Coagglomeration of Formal and Informal Industry : Evidence from India

Mukim, Megha

World Bank, Washington DC

关键词: Urban development;    business environment;    Competitive Advantage;    competitive advantageinformal sector;    Development Economics;   

DOI  :  10.1596/1813-9450-6622
RP-ID  :  WPS6622

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

A large and growing informal sector is a major feature of developing countries. This paper analyzes coagglomeration patterns between formal and informal manufacturing enterprises in India. It studies (a) the causes underlying these patterns and (b) the positive externalities, if any, on the entry of new firms. The analysis finds that buyer-supplier and technology linkages explain much of formal-informal coagglomeration. Also, within-industry coagglomeration matters mostly to small- and medium-sized formal firm births. Traditional measures of agglomeration remain important in explaining new industrial activity, whether in the formal or the informal sector.