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

Philippe Aghion, Robin Burgess (), Stephen James Redding and Fabrizio Zilibotti ()

No iewwp345, IEW - Working Papers from Institute for Empirical Research in Economics - IEW

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

Keywords: Distance to frontier; India; Industrial policy; Financial development; Labor regulation; Liberalization; Manufacturing; Reform. (search for similar items in EconPapers)
JEL-codes: J52 L11 L52 O14 O24 O47 O53 P41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cwa, nep-dev and nep-reg
Date: 2007-12

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Related works:
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 (2006)
Journal Article: The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India (2008)
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