Entry Liberalization and Inequality in Industrial Performance

DSpace/Manakin Repository

Entry Liberalization and Inequality in Industrial Performance

Citable link to this page

. . . . . .

Title: Entry Liberalization and Inequality in Industrial Performance
Author: Zilibotti, Fabrizio; Redding, Stephen; Burgess, Robin; Aghion, Philippe

Note: Order does not necessarily reflect citation order of authors.

Citation: Aghion, Philippe, Robin Burgess, Stephen Redding, and Fabrizio Zilibotti. 2005. Entry liberalization and inequality in industrial performance. Journal of the European Economic Association 3, no. 2-3: 291-302.
Full Text & Related Files:
Abstract: Industrial delicensing, which began in 1985 in India marked a discrete break from a past of centrally planned industrial development. Similar liberalization episodes are taking place across the globe. We develop a simple Schumpeterian growth model to understand how firms respond to the entry threat imposed by liberalization. The model emphasizes that firm responses, even within the same industrial sector, are likely to be heterogeneous leading to an increase in within industry inequality. Technologically advanced firms and those located in regions with pro-business institutions are more likely to respond to the threat of entry by investing in new technologies and production processes. Empirical analysis using a panel of three-digit state industry data from India for the period 1980–1997 confirms that delicensing led to an increase in within industry inequality in industrial performance.
Published Version: http://dx.doi.org/10.1162/jeea.2005.3.2-3.291
Terms of Use: This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA
Citable link to this page: http://nrs.harvard.edu/urn-3:HUL.InstRepos:4481508

Show full Dublin Core record

This item appears in the following Collection(s)

  • FAS Scholarly Articles [7105]
    Peer reviewed scholarly articles from the Faculty of Arts and Sciences of Harvard University
 
 

Search DASH


Advanced Search
 
 

Submitters