Industrial Location in Developing Countries

IF 8.7 1区 经济学 Q1 DEVELOPMENT STUDIES
U. Deichmann, S. Lall, S. Redding, A. Venables
{"title":"Industrial Location in Developing Countries","authors":"U. Deichmann, S. Lall, S. Redding, A. Venables","doi":"10.1093/WBRO/LKN007","DOIUrl":null,"url":null,"abstract":"Despite a diminishing role in industrial countries, the manufacturing sector continues to be an engine of economic growth in most developing countries. This article surveys the evidence on the determinants of industry location in developing countries. It also employs micro data for India and Indonesia to illustrate recent spatial dynamics of manufacturing relocation within urban agglomerations. Both theory and empirical evidence suggest that agglomeration benefits, market access, and infrastructure endowments in large cities outweigh the costs of congestion, higher wages, and land prices. Despite this evidence, many countries have tried to encourage industrial firms to locate in secondary cities or other lagging areas. Cross-country evidence suggests that fiscal incentives to do so rarely succeed. They appear to influence business location decisions among comparable locations, but the result may be a negative-sum game between regions and inefficiently low tax rates, which prevent public goods from being funded at sufficiently high levels. Relocation tends to be within and between agglomerations rather than from large cities to smaller cities or lagging regions. Rather than provide subsidies and tax breaks, policymakers should focus on streamlining laws and regulations to make the business environment more attractive.","PeriodicalId":47647,"journal":{"name":"World Bank Research Observer","volume":null,"pages":null},"PeriodicalIF":8.7000,"publicationDate":"2008-05-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"110","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"World Bank Research Observer","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1093/WBRO/LKN007","RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"DEVELOPMENT STUDIES","Score":null,"Total":0}
引用次数: 110

Abstract

Despite a diminishing role in industrial countries, the manufacturing sector continues to be an engine of economic growth in most developing countries. This article surveys the evidence on the determinants of industry location in developing countries. It also employs micro data for India and Indonesia to illustrate recent spatial dynamics of manufacturing relocation within urban agglomerations. Both theory and empirical evidence suggest that agglomeration benefits, market access, and infrastructure endowments in large cities outweigh the costs of congestion, higher wages, and land prices. Despite this evidence, many countries have tried to encourage industrial firms to locate in secondary cities or other lagging areas. Cross-country evidence suggests that fiscal incentives to do so rarely succeed. They appear to influence business location decisions among comparable locations, but the result may be a negative-sum game between regions and inefficiently low tax rates, which prevent public goods from being funded at sufficiently high levels. Relocation tends to be within and between agglomerations rather than from large cities to smaller cities or lagging regions. Rather than provide subsidies and tax breaks, policymakers should focus on streamlining laws and regulations to make the business environment more attractive.
发展中国家的工业区位
尽管制造业在工业国家的作用日益减弱,但它仍然是大多数发展中国家经济增长的动力。本文调查了发展中国家产业区位决定因素的证据。它还采用了印度和印度尼西亚的微观数据来说明最近城市群内制造业迁移的空间动态。理论和实证证据都表明,大城市的集聚效益、市场准入和基础设施禀赋超过了拥堵、更高工资和土地价格的成本。尽管有这些证据,许多国家仍试图鼓励工业公司在二线城市或其他落后地区落户。跨国家的证据表明,这样做的财政激励很少成功。它们似乎影响了可比地区之间的企业选址决策,但结果可能是地区之间的负和博弈和低效的低税率,这阻碍了公共产品获得足够高水平的资金。迁移倾向于在城市群内部和之间进行,而不是从大城市向较小城市或落后地区迁移。政策制定者应该把重点放在简化法律法规上,而不是提供补贴和税收减免,以使商业环境更具吸引力。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
CiteScore
12.60
自引率
1.20%
发文量
8
期刊介绍: The World Bank Journals, including the Research Observer, boast the largest circulation among economics titles. The Research Observer is distributed freely to over 9,100 subscribers in non-OECD countries. Geared towards informing nonspecialist readers about research within and outside the Bank, it covers areas of economics relevant for development policy. Intended for policymakers, project officers, journalists, and educators, its surveys and overviews require only minimal background in economic analysis. Articles are not sent to referees but are assessed and approved by the Editorial Board, including distinguished economists from outside the Bank. The Observer has around 1,500 subscribers in OECD countries and nearly 10,000 subscribers in developing countries.
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信