Market access and firm performance: evidence based on GIS analysis of road network and manufacturing-plant-level data from India
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TextPublication details: Tokyo Asian Development Bank Institute 2022Description: 20pSubject(s): Online resources: Summary:
Improved road infrastructure lowers transportation costs and helps create a better business environment. We investigate whether better access to markets through and improved road network plays a role in improving firm profitability in India. We construct a district-level market access index using shapefiles of India’s road network, district boundaries, and nightlight raster images and estimate the shortest driving distances for districts using the road network. Using the annual survey of industries data for India during 2001-2015, the study show that market access through improved road connectivity resulted in a lower dispersion of ROA between 2001 and 2015 in India.
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TERI Delhi | Electronic books | Available | EB3149 |
Improved road infrastructure lowers transportation costs and helps create a better business environment. We investigate whether better access to markets through and improved road network plays a role in improving firm profitability in India. We construct a district-level market access index using shapefiles of India’s road network, district boundaries, and nightlight raster images and estimate the shortest driving distances for districts using the road network. Using the annual survey of industries data for India during 2001-2015, the study show that market access through improved road connectivity resulted in a lower dispersion of ROA between 2001 and 2015 in India.
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