Economics at your fingertips  

Effects of land misallocation on capital allocations in India

Gilles Duranton (), Ejaz Ghani (), Arti Grover () and William Kerr ()

No 7451, Policy Research Working Paper Series from The World Bank

Abstract: Growing research and policy interest focuses on the misallocation of output and factors of production in developing economies. Thispaper considers the possible misallocation of financial loans. Using plant-level data on the organized and unorganized sectors, the paper describes the temporal, geographic, and industry distributions of financial loans. The focus of the analysis is the hypothesis that land misallocation might be an important determinant of financial misallocation (for example, because of the role of land as collateral against loans). Using district-industry variations, the analysis finds evidence to support this hypothesis, although it does not find a total reduction in the intensity of financial loans or those being given to new entrants. The analysis also considers differences by gender of business owners and workers in firms. Although potential early gaps for businesses with substantial female employment have disappeared in the organized sector, a sizeable and persistent gap remains in the unorganized sector.

Keywords: Access to Finance; Banks&Banking Reform; Debt Markets; Microfinance; Water and Industry (search for similar items in EconPapers)
Date: 2015-10-20
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) ... cations0in0India.pdf (application/pdf)

Related works:
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:

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().

Page updated 2018-08-17
Handle: RePEc:wbk:wbrwps:7451