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The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India


Aghion, Philippe; Burgess, Robin; Redding, Stephen; Zilibotti, Fabrizio (2007). The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India. Working paper series / Institute for Empirical Research in Economics No. 345, University of Zurich.

Abstract

We study whether the effects on registered manufacturing output of dismantling the License Raj – a system of central controls regulating entry and productionnactivity in this sector – vary across Indian states with different labor market regulations. The effects are found to be unequal across Indian states with differentnlabor market regulations. In particular, following delicensing, industries locatednin states with proemployer labor market institutions grew more quickly than thosenin proworker environments.

Abstract

We study whether the effects on registered manufacturing output of dismantling the License Raj – a system of central controls regulating entry and productionnactivity in this sector – vary across Indian states with different labor market regulations. The effects are found to be unequal across Indian states with differentnlabor market regulations. In particular, following delicensing, industries locatednin states with proemployer labor market institutions grew more quickly than thosenin proworker environments.

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Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Institute for Empirical Research in Economics (former)
Dewey Decimal Classification:330 Economics
Language:English
Date:December 2007
Deposited On:29 Nov 2011 22:47
Last Modified:07 Dec 2017 10:15
Series Name:Working paper series / Institute for Empirical Research in Economics
ISSN:1424-0459
Official URL:http://www.econ.uzh.ch/wp.html

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