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

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 proemployer labor market institutions grew more quickly than those in proworker environments.

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Year of publication:	2007-12
Authors:	Aghion, Philippe ; Burgess, Robin ; Redding, Stephen ; Zilibotti, Fabrizio
Institutions:	Institut für Volkswirtschaftslehre, Wirtschaftswissenschaftliche Fakutät
Subject:	Distance to frontier \| India \| Industrial policy \| Financial development \| Labor regulation \| Liberalization \| Manufacturing \| Reform

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Extent:	application/pdf
Series:	IEW - Working Papers. - ISSN 1424-0459.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series IEW-working papers Number 345
Classification:	J52 - Dispute Resolution: Strikes, Arbitration, and Mediation ; L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; L52 - Industrial Policy; Sectoral Planning Methods ; O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology ; O24 - Trade Policy; Factor Movement Policy; Foreign Exchange Policy ; O47 - Measurement of Economic Growth; Aggregate Productivity ; O53 - Asia including Middle East ; P41 - Planning, Coordination, and Reform
Source:	RePEc - Research Papers in Economics

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