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

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

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Title: The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India
Author: Zilibotti, Fabrizio; Redding, Stephen; Burgess, Robin; Aghion, Philippe

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Citation: Aghion, Philippe, Robin Burgess, Stephen J. Redding, and Fabrizio Zilibotti. 2008. The unequal effects of liberalization: Evidence from dismantling the license Raj in India. American Economic Review 98(4): 1397-1412.
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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 pro-employer labor market institutions grew more quickly than those in pro-worker environments.
Published Version: http://dx.doi.org/10.1257/aer.98.4.1397
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:4554127

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  • FAS Scholarly Articles [7176]
    Peer reviewed scholarly articles from the Faculty of Arts and Sciences of Harvard University
 
 

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