DETERMINANTS OF CITY GROWTH AND OUTPUT IN INDIA

Abstract

To investigate what determines urban population and economic growth, the determinants of urban population growth and economic output in India are examined empirically. City growth and economic output regressions are estimated using several approaches. Since only growing areas are usually designated as towns, the urban population of districts that are larger geographical areas than cities are estimated. It is found that, at the district level, manufacturing has a positive impact on city size, and proximity to large cities causes nearby cities to be larger, reflecting agglomeration effects.