#12420. Firm heterogeneity in industrial clustering of Indian manufacturing industries

July 2026publication date
Proposal available till 10-05-2025
4 total number of authors per manuscript0 $

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Journal’s subject area:
Sociology and Political Science;
Urban Studies;
Geography, Planning and Development;
Public Administration;
Nature and Landscape Conservation;
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Abstract:
This investigation explores the micro-heterogeneity of industrial clustering of registered Indian manufacturing firms and examines the roles of Marshallian agglomeration and localization economies and location-specific policy incentives. The empirical results suggest that of localization economies, only inter-industry buyer–supplier relationships and labour market pooling play significant roles in industrial clustering. Location-specific incentives such as the designation of special economic zones have a positive effect on the co-agglomeration of industries, whereas location-specific tax incentives do not have such an effect, except in the cases of new entrants.
Keywords:
agglomeration economies; economics of localization; India; industrial clusters; industrial heterogeneity; New Economic Geography

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