The Golden Quadrilateral Highway Project and Urban/Rural Manufacturing in India

The Golden Quadrilateral project upgraded the quality and width of 5,846 km of roads in India. The study uses a difference-in-difference estimation strategy to compare non-nodal districts based on their distance from the highway system.

17 Oct 2013

Highways, Firm Productivity, and Allocative Efficiency in India

Public investment in infrastructure is often recommended as a means of promoting economic activity. Identifying the impact of infrastructure investment on economic activity is, however, very complicated. The placement of new infrastructure may itself be endogenous, which makes it difficult to clearly quantify causal effects. Areas with better roads may grow faster, but it is equally possible that the economic potential of the region dictated where roads were placed. It is also possible that roads are placed into struggling regions as an effort to prop up the local economy.

Research Project
4 Dec 2012

What causes dispersion in revenue and output across firms? The brick industry in India

Firms in developing countries exhibit large variations in revenue and output, (given the level of their inputs). A number of researchers have suggested that this is due to “capital misallocation”, i.e. capital does not flow to the households, firms, and entrepreneurs who can use it most productively. There are, however, other plausible explanations of the variability of input-adjusted revenue. One is that firms with greater market power (perhaps because they are more innovative) may charge higher prices and thus generate greater revenues from identical production functions.

Research Project
4 Dec 2012