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...

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Main Authors: Arora Rochna, Kaur Baljit
Format: Article
Language:English
Published: Faculty of Economics, Belgrade 2022-01-01
Series:Ekonomski Anali
Subjects:
Online Access:http://www.doiserbia.nb.rs/img/doi/0013-3264/2022/0013-32642232081A.pdf
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author Arora Rochna
Kaur Baljit
author_facet Arora Rochna
Kaur Baljit
author_sort Arora Rochna
collection DOAJ
description 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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spelling doaj.art-3adff14b478146e387f95b0762ffe7882022-12-22T01:55:43ZengFaculty of Economics, BelgradeEkonomski Anali0013-32641820-73752022-01-01672328110410.2298/EKA2232081A0013-32642232081AIs urbanisation sans infrastructure a myth? Evidence from IndiaArora Rochna0Kaur Baljit1Amritsar Law College, Amritsar, Punjab, IndiaPunjab School of Economics, Guru Nanak Dev University, Amritsar, Punjab, IndiaThis 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.http://www.doiserbia.nb.rs/img/doi/0013-3264/2022/0013-32642232081A.pdfinfrastructureurbanisationindia
spellingShingle Arora Rochna
Kaur Baljit
Is urbanisation sans infrastructure a myth? Evidence from India
Ekonomski Anali
infrastructure
urbanisation
india
title Is urbanisation sans infrastructure a myth? Evidence from India
title_full Is urbanisation sans infrastructure a myth? Evidence from India
title_fullStr Is urbanisation sans infrastructure a myth? Evidence from India
title_full_unstemmed Is urbanisation sans infrastructure a myth? Evidence from India
title_short Is urbanisation sans infrastructure a myth? Evidence from India
title_sort is urbanisation sans infrastructure a myth evidence from india
topic infrastructure
urbanisation
india
url http://www.doiserbia.nb.rs/img/doi/0013-3264/2022/0013-32642232081A.pdf
work_keys_str_mv AT arorarochna isurbanisationsansinfrastructureamythevidencefromindia
AT kaurbaljit isurbanisationsansinfrastructureamythevidencefromindia