Advertisement

Introduction

  • Debdatta SahaEmail author
Chapter
  • 13 Downloads
Part of the Themes in Economics book series (THIE)

Abstract

The economics of food processing is not identical with the economics of primary food sources from agriculture and animal husbandry. A region with an abundance of the latter might not be the hub of processing activity for food items. These raw inputs might leak out of this region to other destinations which provide a thriving environment for processed food. This is the case with Bihar, a subnational state in India, whose tryst with industrialization using food processing as the lead sector is the mainstay of the book. This chapter introduces the concepts that determine whether a region with abundance in raw agri-resources will also be the ideal destination for locating manufacturing units in food processing. The industrial ecosystem, consisting of entrepreneurs and their decision-making process, regional idiosyncrasies and constraints in the form of local demand as well as infrastructural bottlenecks and the government and its policies matter for the manufacturing for this discussion. This chapter sets the tone of the rest of the book by highlighting the importance of region-specificity in the analysis of particular industries, like food processing.

References

  1. Bihar Economic Survey (2018-19), Finance Department, Government of BiharGoogle Scholar
  2. Chakrabarti R (2013) Bihar breakthrough: the turnaround of a Beleaguered State. Rupa PublicationsGoogle Scholar
  3. Dasgupta C (2010) Unraveling Bihar’s ’growth miracle’. Econ Polit Wkly XLV 52:50–62Google Scholar
  4. Gebrewolde TM, Rockey J (2018) The effectiveness of industrial policy in developing Countries: causal evidence from ethiopian manufacturing firms. University of Leicester Working Paper No. 16/07Google Scholar
  5. Hendricks K, Porter RH (1988) An empirical study of an auction with asymmetric information. Am Econ Rev 78(5):865–883Google Scholar
  6. Mukherji A, Mukherji A (2015) Bihar: what went wrong? And what changed? In: Pangariya A, Rao MG (eds) The making of miracles in Indian States. Oxford University Press, New YorkCrossRefGoogle Scholar
  7. Restuccia D, Rogerson R (2013) Misallocation and productivity. Rev Econ Dyn 16(1):1–10CrossRefGoogle Scholar
  8. Restuccia D, Rogerson R (2017) The causes and costs of misallocation. J Econ Perspect 31(3):151–174CrossRefGoogle Scholar
  9. Slade ME (1992) Vancouver’s gasoline-price wars: an empirical exercise in uncovering supergame strategies. Rev Econ Stud 59(2):257–276CrossRefGoogle Scholar
  10. Sutton J (2007) Sunk costs and market structure: price competition, advertising and the evolution of concentration. The MIT Press, CambridgeGoogle Scholar
  11. Sutton J, Kellow N (2011) An enterprise map of Ethiopia. International Growth Centre, London, UK. http://eprints.lse.ac.uk/36390/.ISBN9781907994005
  12. Tybout JR (2000) Manufacturing in developing Countries: how well do they do and why? J Econ Lit 38(1):11–44CrossRefGoogle Scholar
  13. Vyas V (2015) Low-cost, low-tech innovation: new product development in the food industry. Routledge, New YorkCrossRefGoogle Scholar
  14. Witsoe J (2013) Bihar in Kohli A, Singh P ed. Routledge Handbook of Indian Politics.  https://doi.org/10.4324/9780203075906CrossRefGoogle Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.Faculty of EconomicsSouth Asian UniversityNew DelhiIndia

Personalised recommendations