Although there is much empirical evidence to show that good firms become exporters, the literature is less lucid regarding the benefits of exporting. This paper disentangles the direction of the causality to show that exporting improves firm performance. It uses Indian plant-level data (over...

Innovation is crucial to regional economic competitiveness and to productivity growth. A salient feature of the Indian economy is the geographic concentration of both, economic activity and innovation, as measured by patent activity. Theoretical models argue that the clustering of economic...

The distribution of economic activity over physical space - economic geography - is central to economic development. Geographical variations in industrialisation are the primary factor affecting geographical variations in incomes. And so, the question of what drives industry to locate in one...

This paper analyzes the determinants of the location choices made by foreign investors at the district level in India to gauge the relative importance of economic geography factors, local business conditions, and the presence of previous foreign investors. We employ a discrete-choice model and...

We assess the location choices of 6,020 foreign and non-resident Indian investors at the level of Indian districts. Employing conditional logit models, we find that clustering of FDI is driven strongly by herding among investors from both, the same and other countries of origin. However, the...