R&D in Private Industry in Post-Liberalization Period (1990-91 to 2006-07)
There have been debates on the relationships between liberalization and economic performance. It is argued that, by increasing the size of markets and fostering product market competition, liberalization enhances growth (Dollar and Kray (2001, 2002)1, 2, World Bank (2001)3). Liberalization is modeled as a reform which reduces barriers to entry of foreign products and firms, has a more positive effect on economic performance of firms and industries. It increases competition. Incumbent firms can react to the entry threat by making innovative investments. An increased threat, thus, results in higher innovative intensity aimed at escaping that threat (Aghion and Burgess, 2003)4.
Growth of R&D is absolutely essential for achieving long term economic growth. According to experts view a country has to make its research and innovation systems more efficient and keep looking for new ways to simulate innovation for achieving and sustaining high growth rates. Many studies have been done in recent past to study effect of R&D activities on GDP growth and it has been found that R&D investment has positive effect on GDP per capita (Frank Martin, 2007)5.
Realizing this many countries have stepped up their R&D investments. China is one such example; it has become the world’s biggest R&D investor after US, overtaking Japan. As per the Organization of Economic Cooperation and Development (OECD) estimates China spent $136 Billion on R&D in 2006 as compared to $130 billion of Japan(Financial Management, February 2007)6.
Innovative investment has a reference to R&D. R&D is about creating knowledge. R&D results in cost reduction and improvement in quality of products, services and processes. Thus, it is apparent that R&D is an integral part of the business it supports (Norling, 2001)7. The expenditure or the money spent on R&D gives the measure of extent the industry is seeking to develop intellectual property and new technology (Smith, 2006)8.
For private sector firms these investments differ across different sets of firms (Mark A Youndt, Mohan Subramaniam, 2004)9. These investments have also resulted in positive returns for firms and helped them in tackling debts (Samuel H. et al., 1996)10. Several studies have also been conducted to study the influence of R&D investment on firm’s productivity and exports (Bee Yan Aw et al., 2007)11.
Some of these statements/facts have been investigated in this section by examining trends in the R&D expenditure by private sector firms in different sectors during 1990-91 to 2006-07 i.e. post liberalization period. An exercise has been carried out to know the relationship of R&D with a few other parameters of industrial performance such as industrial turnover (sale), royalty payments and export of services & goods.
Prowess database of the Centre for Monitoring Indian economy (CMIE) containing data about large and medium sized Indian firms (about 10,000 in numbers) has been used as the source for the data. Firms covered in prowess are those involved in organized industrial activities, banking and in organized financial & other services sectors in India. These are large and medium Indian firms which are traded on India's major stock exchanges, and others including the central public sector enterprises. On the revenue side these firms account for 75 per cent of all corporate taxes and over 95 per cent of excise duty collected by the Government of India. Data on various parameters for analysis was downloaded for different sectors of Indian private industry as per the National Industrial Classification (NIC) of 1998.
Trends in R & D Investments by Private Industries:
a) Aggregate R&D Expenditure (1990-91 to 2006-07)- Aggregate R&D expenditure for a particular year represents the total R&D expenditure done by all the firms of all the sectors, in that year.
Table 1: Aggregate R&D Expenditure by private industry (1990-91 to 2006-07)
Year |
R&D Expenditure (Rs. in millions) |
% increase in expenditure over previous year |
Industrial GDP at constant price (Rs. in millions) |
R&D Expenditure per unit of Industrial GDP |
Industrial GDP per unit of R&D Expenditure |
1990-91 |
1232.3 |
|
2145520 |
0.001 |
1741.07 |
1991-92 |
2863.3 |
132 |
2137250 |
0.001 |
747.13 |
1992-93 |
5212.2 |
82 |
2208800 |
0.002 |
423.77 |
1993-94 |
6458.1 |
24 |
2373760 |
0.003 |
367.56 |
1994-95 |
9620.7 |
49 |
2621640 |
0.004 |
272.50 |
1995-96 |
14672.8 |
53 |
2966640 |
0.005 |
202.19 |
1996-97 |
19810.8 |
35 |
1202660 |
0.006 |
161.66 |
1997-98 |
17855.7 |
-10 |
3267200 |
0.005 |
182.98 |
1998-99 |
20803.7 |
17 |
3383690 |
0.006 |
162.65 |
1999-00 |
20036.6 |
-4 |
3502330 |
0.006 |
174.80 |
2000-01 |
24397.3 |
22 |
3725990 |
0.007 |
152.72 |
2001-02 |
26388.7 |
8 |
3813660 |
0.007 |
144.52 |
2002-03 |
35719.4 |
35 |
4072760 |
0.009 |
114.02 |
2003-04 |
46660.5 |
31 |
4317240 |
0.011 |
92.52 |
2004-05 |
54243.5 |
16 |
4684510 |
0.012 |
86.36 |
2005-06 |
73115.4 |
35 |
5060160 |
0.014 |
69.21 |
2006-07 |
79453.8 |
9 |
5598010 |
0.014 |
70.46 |
Average rate of growth in R & D Expenditure |
33% |
|
|
|
|
It is evident from the data in Table 1 that there has been consistent growth in R&D investments by the private industry in the post liberalization period (with some exception- 1997-98, 1999-2000). A sharp increase in investments (132%) in the initial period of liberalization indicates that ‘liberalization’ has been taken as a signal by the industry to prepare for competition through technological advancements. In this period (1990-91 to 2006-07), an average 33% rate of growth in R&D investment by private sector is seen. R&D expenditures indicate the level of efforts dedicated to producing future products and process improvements in the business sector and in a way reflect a firm’s perception of the market’s demand for new and improved technology (NSF, 2006). Thus one may say, private industry has taken liberalization a challenge as well an opportunity to grow. A look on the last two columns of Table 1 also shows the trends of growth in R&D Expenditure per unit of Industrial GDP and vice versa. It can be seen from Table 1 that R&D Expenditure per unit of Industrial GDP has increased, however the contribution of R&D Expenditure in growth of Industrial GDP (per unit) has decreased.
b) Trends in Industry-wide R&D Investments
Table 2: R&D Investments across sectors and Share of Capital and Current account in Total R & D Expenditure (1990-91 to 2006-07)
| NIC Code |
Sectors of Industry |
Total R&D Expenditure (Rs. in million) | Share of Capital Account (%) |
Share of Current Account(%) |
|---|---|---|---|---|
C10 |
Mining of Coal and Lignite; Extraction Of Peat |
208.6 |
40 |
60 |
C11 |
Extraction of Crude Petroleum and Natural Gas; Service Activities Incidental To Oil And Gas Extraction, Excluding Surveying |
11250.5 |
18 |
82 |
C13 |
Mining of Metal Ores |
1486.7 |
21 |
79 |
D15 |
Manufacture of Food Products and Beverages |
13037.1 |
32 |
68 |
D16 |
Manufacture of Tobacco Products |
3086.3 |
27 |
73 |
D17 |
Manufacture of Textiles |
3526.7 |
45 |
55 |
D19 |
Tanning and Dressing Of Leather; Manufacture Of Luggage, Handbags, Saddlery Harness and Footwear |
390 |
4 |
96 |
D21 |
Manufacture of Paper and Paper Products |
1454.9 |
28 |
72 |
D22 |
Publishing, Printing and Reproduction Of Recorded Media |
19.1 |
76 |
24 |
D23 |
Manufacture of Coke, Refined Petroleum Products And Nuclear Fuel |
23719.8 |
38 |
62 |
D24 |
Manufacture of Chemicals and Chemical Products |
172084 |
33 |
67 |
D25 |
Manufacture of Rubber and Plastics Products |
7384.8 |
31 |
69 |
D26 |
Manufacture of other Non-Metallic Mineral Products |
9904.1 |
22 |
78 |
D27 |
Manufacture of Basic Metals |
18511.4 |
22 |
78 |
D28 |
Manufacture of Fabricated Metal Products, Except Machinery And Equipment |
1189.5 |
24 |
76 |
D29 |
Manufacture of Machinery and Equipment |
35837.1 |
15 |
85 |
D30 |
Manufacture of Office, Accounting and Computing Machinery |
2003.1 |
33 |
67 |
D31 |
Manufacture of Electrical Machinery and Apparatus |
9242.8 |
27 |
73 |
D32 |
Manufacture of Radio,Television and Communication Equipment and Apparatus |
30340.1 |
16 |
84 |
D33 |
Manufacture of Medical, Precision and Optical Instruments, Watches and Clocks |
822 |
29 |
71 |
D34 |
Manufacture of Motor Vehicles, Trailers and Semi-Trailers |
72602.8 |
27 |
73 |
D35 |
Manufacture of Other Transport Equipment |
36952.6 |
23 |
77 |
E40 |
Electricity, Gas, Steam and Hot Water Supply |
3163.1 |
47 |
53 |
E41 |
Collection, Purification and Distribution of Water |
0 |
0 |
0 |
I60 |
Land Transport; Transport via Pipelines |
0.8 |
0 |
100 |
I61 |
Water Transport |
0 |
0 |
0 |
I62 |
Air Transport |
0 |
0 |
0 |
I64 |
Post and Telecommunications |
325.8 |
48 |
52 |
N85 |
Health and Social Work |
1.2 |
0 |
100 |
|
Average |
|
29 |
71 |
Table 2 shows maximum expenditure on R&D has occurred in D24 (Manufacturing of Chemicals and Products sector) followed by Manufacturing of Motor Vehicles (D34). The order is further followed by manufacture of Other Transport Equipments (D35), Manufacturing of Machinery and Equipments (D29) and Manufacturing of Radio, television and Communication Equipment (D32). Table 4, regarding industry wide R&D investment (both public and private), also shows Pharmaceutical and Chemical, Automotive, Electrical and Electronics sectors accounting for the major R&D investments.
On the other extreme, no expenditure on R&D in E41 (Collection, Purification and Distribution of Water), I61 (Water Transport) and I62 (Air transport) shows absence of in-house R&D. R&D investment figures are negligible in few other sectors as well.
Share of capital and current account in R&D Expenditure: Last two columns of Table 2 show shares of capital and current account in R&D Expenditure. Expenditure under capital account refers to investment done to establish infrastructure required to set up R&D activities e.g. building research lab, buying equipment etc. Expenditure under current account refers to annual or recurring expenditure e.g. expenditure on manpower, bills paid etc. It can be seen in Table 2 that more expenditure has been incurred in current account (recurring expenditure). On an average 2.45 times more expense in this account signifies pursuance of ongoing R&D.
Trends in aggregate sales by Indian Private Firms:
a) Aggregate level Industrial
Table 3: Industrial Sales (at aggregate level) and R&D Intensity for 1990-91 to 2006-07
Year |
R&D Expenditure (Rs. in millions) |
Sales (Rs in millions) |
R&D Intensity (R&D /Sales) |
1990-91 |
1232.3 |
2067273 |
0.000596 |
1991-92 |
2863.3 |
2619325 |
0.001093 |
1992-93 |
5212.2 |
3072073 |
0.001697 |
1993-94 |
6458.1 |
3509945 |
0.00184 |
1994-95 |
9620.7 |
4430550 |
0.002171 |
1995-96 |
14672.8 |
5462023 |
0.002686 |
1996-97 |
19810.8 |
6184991 |
0.003203 |
1997-98 |
17855.7 |
6665238 |
0.002679 |
1998-99 |
20803.7 |
7311751 |
0.002845 |
1999-2000 |
20036.6 |
8647559 |
0.002317 |
2000-01 |
24397.3 |
10396750 |
0.002347 |
2001-02 |
26388.7 |
10944630 |
0.002411 |
2002-03 |
35719.4 |
12213370 |
0.002925 |
2003-04 |
46660.5 |
13901280 |
0.003357 |
2004-05 |
54243.5 |
16457200 |
0.003296 |
2005-06 |
73115.4 |
19044160 |
0.003839 |
2006-07 |
79453.8 |
22317640 |
0.00356 |
Data in Table 3 show a growth trend in aggregate sales of private industry with the increase in R&D investment, means expansion in market for industries.
b) Industry-wide Sales:
Table 4: Across industrial sectors - Turnover and R&D Intensity
| Industry |
Sales (Rs in millions) |
R&D Expenditure (Rs in millions) |
R&D Intensity (R&D /Sales) |
|---|---|---|---|
C10 |
3702401 |
208.6 |
5.63 E-05 |
C11 |
3818455 |
11250.5 |
0.002946 |
C13 |
653745.8 |
1486.7 |
0.002274 |
D15 |
8350354 |
13037.1 |
0.001561 |
D16 |
1871015 |
3086.3 |
0.00165 |
D17 |
5293588 |
3526.7 |
0.000666 |
D19 |
337305 |
390 |
0.001156 |
D21 |
1393373 |
1454.9 |
0.001044 |
D22 |
610650 |
19.1 |
3.13 E-05 |
D23 |
38162160 |
23719.8 |
0.000622 |
D24 |
20331180 |
172083.9 |
0.008464 |
D25 |
3193941 |
7384.8 |
0.002312 |
D26 |
4239787 |
9904.1 |
0.002336 |
D27 |
15541560 |
18511.4 |
0.001191 |
D28 |
1078273 |
1189.5 |
0.001103 |
D29 |
5948097 |
35837.1 |
0.006025 |
D30 |
694399.5 |
2003.1 |
0.002885 |
D31 |
2894627 |
9242.8 |
0.003193 |
D32 |
3238392 |
30340.1 |
0.009369 |
D33 |
319770.4 |
822 |
0.002571 |
D34 |
8778036 |
72602.8 |
0.008271 |
D35 |
2914056 |
36952.6 |
0.012681 |
E40 |
11979710 |
3163.1 |
0.000264 |
E41 |
1793.2 |
0 |
0 |
I60 |
483784.2 |
0.8 |
1.65 E-06 |
I61 |
971856.8 |
0 |
0 |
I62 |
1814743 |
0 |
0 |
I64 |
4979779 |
325.8 |
6.54 E-05 |
N85 |
145899.1 |
1.2 |
8.22 E-06 |
It can be seen from Table 4 that maximum sale is shown by Coke, Refinery Petroleum Products and Nuclear Fuel (D23), followed by Chemical and Chemical Products (D24), Manufacturing of Basic Metal (D27), and Electricity, Gas, Steam and Hot water Supply (E40).
Trends in R&D Intensities
R&D intensity in a firm is often defined to be the ratio of expenditures by a firm on research and development to the firm's sales. Absolute numbers of sales and R&D are found to be showing an increasing order since 1990-91 till 2006-07. To know whether increased R&D investment is helping a firm in increasing its sales a measure of R&D intensity parameter has been used for analysis. At aggregate level in the industry over the years, some continuous increase in intensity has been there till 1997 (except for 1994) but no definite pattern emerges (Table 3).
One cannot directly relate the increase in sales directly with R&D expenditure when data is used at aggregate industrial level. Some sectors, which are advanced and closer to technological frontiers, are expected to make higher expenditure on R&D (Aghion and Burgess, 2003)4.
On analyzing R&D intensity across sectors (Table 4), maximum R&D intensity has been shown by D35 (Manufacture of other transport equipment), followed by D32 (Manufacture of Electronics and communication equipment). At third rank is D24 (Chemicals and chemical products) and D34 (Manufacture of motor vehicles etc.). High intensity of R&D is understandable for such sectors. Machinery and equipment (D29) is another area indicating the need for higher investments in R&D versus sales. Similarly there are some other sectors reflecting some significant R&D intensity in the post liberalization era. So one can say these particular sectors are competing at the technological fronts in the private sector in India.
Investments in royalty payments
A royalty payment is expenditure done by a firm on acquiring new technology. Competence by a firm is built through in-house R&D as well as by acquiring technologies on payment basis. Table 5 shows the trends in royalty payments expenditure during post liberalization period.
Table 5: Royalty payment by Indian private industry for 1990-91 to 2006-07 (Rs in millions)
| Year |
R&D Expenditure |
Expenses in Royalty Payment |
Export of Goods earnings |
Export of Services earnings |
|---|---|---|---|---|
1990-1991 |
1232.3 |
4157.7 |
84749.7 |
18971.7 |
1991-1992 |
2863.3 |
12280.5 |
120173.5 |
26451.4 |
1992-1993 |
5212.2 |
18746 |
158615.5 |
46571 |
1993-1994 |
6458.1 |
19528.9 |
214908.4 |
34701.1 |
1994-1995 |
9620.7 |
10090.2 |
271616.1 |
67334.2 |
1995-1996 |
14672.8 |
27672.1 |
350657.7 |
64344.9 |
1996-1997 |
19810.8 |
51013.3 |
394941.8 |
74949.3 |
1997-1998 |
17855.7 |
54566.1 |
442032.3 |
82716.4 |
1998-1999 |
20803.7 |
37123.8 |
456569.7 |
95865 |
1999-2000 |
20036.6 |
68191.7 |
509185 |
102236.2 |
2000-2001 |
24397.3 |
90989.1 |
754029.3 |
53235.2 |
2001-2002 |
26388.7 |
120187.9 |
719609.2 |
98427.1 |
2002-2003 |
35719.4 |
138328.8 |
893770.1 |
95932.3 |
2003-2004 |
46660.5 |
149901.5 |
1135266 |
86420.1 |
2004-2005 |
54243.5 |
170062.5 |
1546837 |
98866.8 |
2005-2006 |
73115.4 |
194620.6 |
1895607 |
157338.3 |
2006-2007 |
79453.8 |
230511 |
2637377 |
187584.9 |
Maximum investments in royalty payment were done during 1991-1992, showing around 200 per cent growth over the last year. It indicates the need felt by the private industries to be equipped with more of ready new technology on payment basis. Overall in all these years also, an average percent growth rate on royalty payment has been more than 38 per cent. Data indicate the trend of private industry towards building technological competence.
To explore the sectors involved in investments toward royalty payment, data have been analysed (Table 6) across sectors for the same period.
Table 6: Industry level data across sectors for 1990-91 to 2006-07 (Rs in millions)
| Industrial Sectors |
R&D Expenditure |
Expenses in Royalty Payment |
Export of Goods |
Export of Services |
|---|---|---|---|---|
C10 |
208.6 |
307296.2 |
1564.2 |
0 |
C11 |
11250.5 |
358681 |
163974.6 |
71933.7 |
C13 |
1486.7 |
9437.9 |
244365.3 |
339.2 |
D15 |
13037.1 |
31073.7 |
789589.8 |
3565.8 |
D16 |
3086.3 |
935.5 |
142468 |
25078.9 |
D17 |
3526.7 |
2799.7 |
1261204 |
6026.8 |
D19 |
390 |
1105.4 |
143651.7 |
18 |
D21 |
1454.9 |
224.1 |
63723 |
746.5 |
D22 |
19.1 |
4480.6 |
19110 |
4363.8 |
D23 |
23719.8 |
11871.8 |
2635561 |
497.1 |
D24 |
172083.9 |
14840.2 |
2408068 |
47350.9 |
D25 |
7384.8 |
5339.4 |
382338.7 |
8018.8 |
D26 |
9904.1 |
29939.9 |
300833.3 |
12192.9 |
D27 |
18511.4 |
53548.7 |
2105626 |
6891.1 |
D28 |
1189.5 |
905.8 |
140589 |
28199.8 |
D29 |
35837.1 |
17539.1 |
429539.8 |
23928.8 |
D30 |
2003.1 |
9373.4 |
106700 |
4969.9 |
D31 |
9242.8 |
5661.8 |
188562.2 |
24744.5 |
D32 |
30340.1 |
13459.7 |
138515.3 |
18426.4 |
D33 |
822 |
814.8 |
20587 |
6928.7 |
D34 |
72602.8 |
54727.1 |
663182.9 |
9616.5 |
D35 |
36952.6 |
31653.9 |
138146.5 |
5520.1 |
E40 |
3163.1 |
12662.1 |
11332.1 |
3803.9 |
E41 |
0 |
0 |
0 |
0 |
I60 |
0.8 |
308.8 |
324.3 |
5396.1 |
I61 |
0 |
1575.9 |
145.2 |
320420.7 |
I62 |
0 |
2155.2 |
0 |
286950.8 |
I64 |
325.8 |
415510.3 |
86056 |
463525.7 |
N85 |
1.2 |
49.7 |
187.8 |
2490.5 |
Highest investment on royalty payment has been made by I64 (Post and Telecommunication) and followed by C11 (Extraction of Crude Petroleum and Natural Gas etc.), C10 (Mining of Coal and Lignite etc). At next level (1/5th to 1/8th expenditure) are D34 (Manufacturing of Motor Vehicles), D27 (Manufacturing of Basic Metals) and D15 (Manufacturing of Food Products and Beverages). Manufacturing of Chemicals and Chemical Products (D24) is in the top 10 sectors ranking for expenses made towards Royalty payments. Maximum expenditure made by Post and Telecom Sector (dominated by mobile communications) which is frontier area of technological advancements at the global level. It shows the policy of rapidly expanding private telecom sector in India to acquire the latest technologies to remain competitive in the market. This sector is showing negligible investments in the in-house R&D. Mining of Coal and Lignite (C10) sector spends meager amount on R&D and mainly acquiring technology on the basis of royalty payment. Extraction of Crude Oil (C11) has more than thirty times budget for royalty payment over in-house R&D. Manufacturing of Motor vehicles is second highest in R&D budget and at fourth level towards royalty payment. In other words, the sector is technologically dynamic and is on the competitive front on the technological capability building. Table 4 also indicates this sector as on the competitive front. Manufacturing of chemicals and chemical products comprising pharmaceutical companies with highest R&D budget stands within top ten sectors for royalty payment budget.
Export of Goods
Data in Table 6 show a consistent growth in the earnings through exports of goods by the private industries. Rate of growth is found to be appreciable in the past few years (2002-03 onwards).
Across the sectors performance in earnings through exports is comparable at the top order by Manufacture of Coke, Refined Petroleum Products and nuclear fuel (D23), Manufacturing of Chemical and Chemical Products (D24) and then Manufacture of Basic Metals (D27). D24 sector shows the highest R&D expenses whereas D27 indicates R&D investments at 7th level and Royalty payments also of the significant order, at 5th level of amongst industries being investigated. D23 industry’s R&D investments are also significant (6th level). These industries are in the highest bracket of export earnings through goods that has been found to be related with higher investments on R&D and royalty payments and thus by investing on technological competence building. Apart from Manufacturing of Textiles (D17), Manufacturing of Food products and Beverages (D15) also show and Manufacturing of Vehicles (D34) show significant earnings through exports. D34 has second highest R&D spending and fourth highest royalty payments and again indicating relationship of building technological advancements with export earnings.
Export of Services
It is amount earned by providing services to foreign clients. Data on this aspect in Table 6 show growth in earnings but that is not very consistent. A very significant growth in the last two years (more than 50%) over 2004-05 is noticeable.
The role of sectors in contributing the earnings through export in services can be interpreted from Table 6. Best scenario has been shown by Post and telecommunications (I64) which is a services dominated sector and is directly correlated with the highest royalty payment. Firms in this sector show negligible expenses in R&D and are heavily dependent on buying new technology through royalty payments and remain on the top in export earnings. At the second level are Air Transport and Water Transport; these sectors show no indigenous R&D but being service sectors and managing their earnings through transportation of passengers and goods across countries, there is a very little sum paid towards royalty payments. Manufacturing of Chemicals and Chemical Products is at the fifth level. Pharmaceutical companies in this sector are making earnings through contract research and clinical trials and this sector’s competence is well supported by R&D spending and Royalty payment expenditure and is showing this sector to be at the technological frontier for building its capabilities.
Innovation trends in Indian private industry
Following parameters were taken into consideration for observing the trends in innovation in private sector firms:
- Compensation given to employees: This represents total emoluments given to the manpower involved in production process.
- Energy charges: This represents the money spent power and fuel by firms operating in all sectors.
- Raw materials: This represents money spent on purchase of raw material by firms operating in all sectors.
- Sales: This represents total sales achieved by the industry by firms operating in all sectors.
For judging the extent of innovation, ratio of sales with respect to first three parameters was calculated. A higher value of the ratio represents more sales are achieved consuming per unit of compensation given to employees, energy and raw materials while a low value represents vice versa. Therefore higher value of the ratio represents higher amount of innovation achieved. Trends observed for different years are shown in the Figures 1-3.
Fig 1: Sales per unit of compensation
A close observation of the above figure shows a fall in the sales achieved per unit of compensation given to employees indicating a fall in the innovative capacity in the private sector industrial firms.
Fig 2: Sales per unit of money spent on power
A close observation of the above figure shows a fall in the sales achieved per unit of money spent on power indicating a fall in the innovative capacity in the private sector industrial firms.
Fig 3: Sales per unit of raw material
A close observation of the above figure shows a fall in the sales achieved per unit of money spent on raw material indicating a fall in the innovative capacity in the private sector industrial firms.
Regional distribution of firms in some select sectors
A further look at region-wise distribution of firms in industry, cement and chemical industry in India was also attempted (Figures 4-6):
Fig 4: Regional distribution of cement industry
Fig 5: Regional distribution of chemical industry
Fig 6: Regional distribution of processed food industry
It can be seen from Figures (4-6) that most of the cement and processed food industry has been concentrated in southern part of the country but chemical industries are located in western part of the country. But in case of all the three sectors eastern part of the country has lowest number of industrial units.
References:
- David Dollar and Aart Kray(2001) Trade, growth and poverty, paper presented at the world institute for development economic research, Helsinki
- David Dollar and Aart Kray(2002) Growth is good for poor, Journal of economic growth, Vol .7 Issue 3, pp 195-225
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