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Informal localization of bag producing industry in belgharia: The“industrial district” syntax inferring a formal-informal rivalry?

Author: 
Sri SukantaSaha
Subject Area: 
Social Sciences and Humanities
Abstract: 

The present study is an effort to explore how the formal-informal rivalry of any industry is owing to form an “industrial district” within the frame of an informal localization. To analyze why and how economic organization of any particular industrial economy is framed with spatial dispersion and coherence of informal industrial activity within any region,the study is confined to depict how contraction of formal sector production of any industry is able to inherit a rival and growing informal industrial localization which is sufficient to influence employment, output and growth of the entire regional economy. What is crucial here is that the industry does not exhibit significant formal-informal linkages in both product and labour market processes as several other informal industries convey, rather the contraction of the formal sector of the industry inherits faster expansion of the informal industrial localization within the regional economy over time. The study is confined to informal localization with agglomeration ofproduction units a specific spatial industrialcluster in West Bengal, namelythe Belgharia Bag Producing Industryin the district of North 24 Paraganasoperating with about 3,000 small and medium informal production units incorporating near about 15,000 employment and more than 300 sales outlets, as per our primary survey conveys. The site has been selected not on the basis of its size or its significant position to the industrial map in West Bengal but due to its specificity to fulfill the basic objectiveof our study. This is why the study is not confined to focus on the concentration of other important spatial clustersin West Bengal as my earlier studies convey. Rather, the present study is confined to detect an unexplored site of informal industrial economy in West Bengal to show how a small spatial cluster of informal enterprises is becoming able to influence output, growth and employment of the regional economy through its faster expansionand growth despite horizontal contraction of formal industrial production. The uneven distribution of concentratedinformal production units across space and time is incorporated in the study in references to micro-level field studies conductedon the basis of purposive sampling.The consideration is strongly based upon literature supportderived from classical and new economic geography school in the field of Location Economics, Regional Economics and Urban Economics.

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