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10/14/2016

DeterminantsofIndustrialLocationChoiceinIndia:APolychoricPrincipalComponentAnalysisApproach|SpringerLink

DeterminantsofIndustrialLocationChoicein
India:APolychoricPrincipalComponent
AnalysisApproach
Journal of Quantitative Economics
June 2016, Volume 14, Issue1, pp 2956
Authors

Authors and ailiations

NalinKumarRamaul

,PinkiRamaul

Original Article
First Online: 18 January 2016
DOI (Digital Object Identifier): 10.1007/s40953-015-0026-z

Cite this article as:


Ramaul, N.K. & Ramaul, P. J. Quant. Econ. (2016) 14: 29. doi:10.1007/s40953-0150026-z
1

73

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Abstract
Thisresearchpaperattemptstoidentifythefactorsdeterminingindustriallocation
choiceinIndia,whichisessentialforformulationofaneffectiveindustriallocation
policy.Therearetwobroadapproachestoidentifythedeterminantsoffirms
locationdecisions.OneisModellingapproachorRevealedPreferenceapproachor
aneconometricanalysisofempiricalpatternstoidentifyrevealedpreferencebased
onthecharacteristicsoftheregion.ThesecondapproachistheStatedPreference
(orIndustrialLocationSurvey)approach.Surveyresearchtypicallyidentifiesone
ormorekeyrespondentsandasksthemaboutthefactors,whichinfluencedtheir
locationdecisionchoice.ThepresentresearchpaperisbasedontheIndustrial
LocationSurveyapproach.Itattemptstoanalysetheprimarysurveydatacollected
inthesolicitedresearchstudysponsoredbythePlanningCommission,
GovernmentofIndia.Theprimarystudyconsistedofasamplesurveyinthe
SpecialCategoryStatesortheBeneficiaryStatesviz.JammuandKashmir,
HimachalPradeshandUttarakhandandtheControlGrouportheNon
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DeterminantsofIndustrialLocationChoiceinIndia:APolychoricPrincipalComponentAnalysisApproach|SpringerLink

BeneficiaryNeighbouringStatesviz.Haryana,PunjabandUttarPradesh.Thedata
fromthequestionsconcerningimportanceoflocationfactorswasderivedusing
Likertratingscale.ThePolychoricPrincipalComponentAnalysisisusedtoidentify
thekeyfactorsinindustriallocation.Theanalysisvalidatestheimportanceof
fiscalincentivesinindustriallocation.

Keywords
Industriallocation Locationfactors Regionalincentives Specialcategorystates
inIndia Principalcomponentanalysis Polychoriccorrelation
TheresearchstudyentitledImpactEvaluationofPackageofSpecialCategory
States(Uttarakhand,HimachalPradeshandJ.K.)wassponsoredbytheSocio
EconomicResearchDivision(SER),PlanningCommission,GovernmentofIndia.
Wearehighlyobligedtothemforfundingthisresearchstudy.

JELClassification
R3spatialproductionanalysisandfirmlocation L5regulationandindustrial
policy

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