Is urbanisation sans infrastructure a myth? Evidence from India
This study examines the determinants of urbanisation in Indian states with special emphasis on infrastructure and infrastructure investment, using data on 17 Indian states for 1991 to 2017. The fixed effects regression model shows that physical infrastructure is an important determinant in...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics, Belgrade
2022-01-01
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| Series: | Ekonomski Anali |
| Subjects: | |
| Online Access: | http://www.doiserbia.nb.rs/img/doi/0013-3264/2022/0013-32642232081A.pdf |
| Summary: | This study examines the determinants of urbanisation in Indian states with
special emphasis on infrastructure and infrastructure investment, using data
on 17 Indian states for 1991 to 2017. The fixed effects regression model
shows that physical infrastructure is an important determinant in high
income states, while social infrastructure is important in high-income and
low-income states (where the magnitude is negative). Electricity consumption
and teledensity positively affect urbanisation in high- and low-income
states, while the infant mortality rate in high-income states and the
enrolment ratio in low-income states affect urbanisation negatively. The
supply-led inverted-U hypothesis of infrastructure- investment-led
urbanisation is only disproven for middle-income states while applying
strongly in all other cases, particularly low-income states. Hence, the
impact of infrastructure on urbanisation differs across states not only by
type of infrastructure but also by the state’s income category. |
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| ISSN: | 0013-3264 1820-7375 |