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

Philippe Aghion, Robin Burgess, Stephen Redding and Fabrizio Zilibotti

No 12031, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study the effects of the progressive elimination of the system of industrial regulations on entry and production, known as the "license raj," on registered manufacturing output, employment, entry and investment across Indian states with different labor market regulations. The effects are found to be unequal depending on the institutional environment in which industries are embedded. In particular, following delicensing, industries located in states with pro-employer labor market institutions grew more quickly than those in pro-worker environments.

JEL-codes: L10 (search for similar items in EconPapers)
Date: 2006-02
New Economics Papers: this item is included in nep-cwa, nep-dev and nep-his
Note: EFG
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Citations: View citations in EconPapers (42)

Published as Aghion P, Burgess R, Redding S and Zilibotti F. "The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India." American Economic Review 94, 4 (2008): 1397-1412.

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Related works:
Journal Article: The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India (2008)
Working Paper: The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India (2008)
Working Paper: The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India (2007)
Working Paper: The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India (2006)
Working Paper: The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India (2006)
Working Paper: The unequal effects of liberalization: evidence from dismantling the License Raj in India (2006)
Working Paper: The Unequal Effects of Liberalization: Evidence fromDismantling the License Raj in India (2005)
Working Paper: The unequal effects of liberalization: evidence from dismantling the license Raj in India (2005)
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