Production specialization across regions has repercussions on regional inequality. How are production chains shaped by individuals firms’ characteristics and decisions? How does this shape regional income disparities? What role do regional barriers and federal governments play? This project aims to answer these questions using analysis that incorporates the effects of geographic barriers on how supply chains are formed. Analysis will inform a framework for intra-national trade which will subsequently be used to study the quantitative implications in India of a significant change in commercial taxing. Findings could aid the Indian government in enacting policies for industrial development and equitable growth. Results forthcoming.
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