Misallocation and Manufacturing TFP in China and India

Chang-Tai Hsieh and Pete Klenow

Working Papers from U.S. Census Bureau, Center for Economic Studies

Abstract: Resource misallocation can lower aggregate total factor productivity (TFP). We use micro data on manufacturing establishments to quantify the potential extent of misallocation in China and India compared to the U.S. Compared to the U.S., we measure sizable gaps in marginal products of labor and capital across plants within narrowly-defined industries in China and India. When capital and labor are hypothetically reallocated to equalize marginal products to the extent observed in the U.S., we calculate manufacturing TFP gains of 30-50% in China and 40-60% in India.

Pages: 60 pages
Date: 2009-02
New Economics Papers: this item is included in nep-cwa, nep-eff and nep-tra
References: Add references at CitEc
Citations: View citations in EconPapers (3072)

Downloads: (external link)
https://www2.census.gov/ces/wp/2009/CES-WP-09-04.pdf First version, 2009 (application/pdf)

Related works:
Journal Article: Misallocation and Manufacturing TFP in China and India (2009)
Working Paper: Misallocation and Manufacturing TFP in China and India (2008)
Working Paper: Misallocation and Manufacturing TFP in China and India (2007)
Working Paper: Misallocation and manufacturing TFP in China and India (2007)
Working Paper: Misallocation and Manufacturing TFP in China and India (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:09-04

Access Statistics for this paper

More papers in Working Papers from U.S. Census Bureau, Center for Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Dawn Anderson ().