Entry Liberalization and Inequality in Industrial Performance

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Entry Liberalization and Inequality in Industrial Performance

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dc.contributor.author Zilibotti, Fabrizio
dc.contributor.author Redding, Stephen
dc.contributor.author Burgess, Robin
dc.contributor.author Aghion, Philippe
dc.date.accessioned 2010-10-14T15:30:53Z
dc.date.issued 2005
dc.identifier.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. en_US
dc.identifier.issn 1542-4774 en_US
dc.identifier.issn 1542-4766 en_US
dc.identifier.uri http://nrs.harvard.edu/urn-3:HUL.InstRepos:4481508
dc.description.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. en_US
dc.description.sponsorship Economics en_US
dc.language.iso en_US en_US
dc.publisher MIT Press en_US
dc.relation.isversionof http://dx.doi.org/10.1162/jeea.2005.3.2-3.291 en_US
dash.license LAA
dc.title Entry Liberalization and Inequality in Industrial Performance en_US
dc.type Journal Article en_US
dc.description.version Version of Record en_US
dc.relation.journal Journal of the European Economic Association en_US
dash.depositing.author Aghion, Philippe
dc.date.available 2010-10-14T15:30:53Z

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  • FAS Scholarly Articles [7501]
    Peer reviewed scholarly articles from the Faculty of Arts and Sciences of Harvard University

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