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

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

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)
4 Downloads (Pure)

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.
Original languageEnglish
Pages (from-to)1055-1068
Number of pages14
JournalRegional Studies
Volume57
Issue number6
Early online date26 Jan 2023
DOIs
Publication statusPublished - Jun 2023

Keywords

  • India
  • economic activity
  • public infrastructure
  • spillovers

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