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Urbanization and Economic Growth in Punjab (India): An Empirical Analysis

Mahey, Kavita and Tripathi, Sabyasachi (2016): Urbanization and Economic Growth in Punjab (India): An Empirical Analysis.

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Abstract

In recent decades, urbanization in Punjab is occurring rapidly by reducing the share of agricultural activity and increasing rural to urban migration. In this perspective, the present paper using Census data describes the recent past trends and patterns of Punjab’s urbanization from 1961 to 2011. It investigates the relevant determinants of urbanization in Punjab. Finally, it measures the impact of urbanization on urban economic growth in Punjab. The empirical results show that the growth rate of urban population is higher than that of the total population in Punjab. Urban agglomerations and urban areas of in Punjab also are increasing rapidly. Most importantly, it has been seen that urban population in Punjab is concentrated in an around Class I cities than other class of cities/towns. The OLS regression results show that road distance to sub division (or nearest city population of 1 lakh and more) has a negative effect on urbanization in Punjab measured by size of city population. On the other hand, city-wise total road length has a positive impact on urbanization in Punjab. In addition to that, city-wise total number of schools, colleges and electricity connections has a positive impact on urbanization in Punjab measured by city population density. The paper also finds the positive link between urbanization measured by size of district urban population and urban economic growth measured by district domestic product in Punjab. Finally, the paper suggests several policy options for planned urbanization in Punjab for not only to improve economic growth in Punjab but also in India as well.

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