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The unequal effects of liberalization: evidence from dismantling the License Raj in India


Aghion, Philippe; Burgess, Robin; Redding, Stephen J; Zilibotti, Fabrizio (2008). The unequal effects of liberalization: evidence from dismantling the License Raj in India. American Economic Review, 98(4):1397-1412.

Abstract

We study whether the effects on registered manufacturing output of dismantling the License Raj — a system of central controls regulating entry and production activity in this sector — vary across Indian states with different labor market regulations. The effects are found to be unequal across Indian states with different labor market regulations. In particular, following delicensing, industries located in states with pro-employer labor market institutions grew more quickly than those in pro-worker environments.

We study whether the effects on registered manufacturing output of dismantling the License Raj — a system of central controls regulating entry and production activity in this sector — vary across Indian states with different labor market regulations. The effects are found to be unequal across Indian states with different labor market regulations. In particular, following delicensing, industries located in states with pro-employer labor market institutions grew more quickly than those in pro-worker environments.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Banking and Finance
03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:September 2008
Deposited On:24 Nov 2008 13:44
Last Modified:05 Apr 2016 12:33
Publisher:American Economic Association
ISSN:0002-8282
Publisher DOI:10.1257/aer.98.4.1397
Official URL:http://www.atypon-link.com/AEAP/doi/pdf/10.1257/aer.98.4.1397
Permanent URL: http://doi.org/10.5167/uzh-5290

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