Development : a study of the Indian manufacturing industry

摘要: If infrastructure tends to generate spillover externalities, as has been the assumption in much of the development literature, one may reasonably look for evidence of such indirect effects in the accounts of manufacturing industries. Empirical support for this assumption has so far been ambiguous. This analysis of Indian data, however, reveals substantial externality effects from the states' infrastructure to manufacturing productivity. The analysis separates the direct effects of roads and electricity, as mediated by the infrastructure services …