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

@article{Aghion2005TheUE,
  title={The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India},
  author={Philippe Aghion and Robin Burgess and Stephen J. Redding and Fabrizio Zilibotti},
  journal={Political Methods: Quantitative Methods eJournal},
  year={2005}
}
We study the effects of the progressive elimination of the system of industrial regulations on entry and production, known as the "license raj," on registered manufacturing output, employment, entry and investment across Indian states with different labor market regulations. The effects are found to be unequal depending on the institutional environment in which industries are embedded. In particular, following delicensing, industries located in states with pro-employer labor market institutions… 
Deregulation and firm investment: evidence from the dismantling of the license system in India
ABSTRACT We analyse the impact of deregulatory reforms in India during the 1990s, which eliminated compulsory industrial licensing, on manufacturing firms’ investment decisions. We find an
The Effects of Economic Reforms on Manufacturing Dualism: Evidence from India
Dualism is a pervasive feature of the manufacturing sectors of less-developed countries, with large differences in productivity between the informal and the formal sectors. Policy distortions are
The Unequal Effect of India's Industrial Liberalization on Firms’ Decision to Innovate: Do Business Conditions Matter?
This paper examines the heterogeneous impact of industrial liberalization policy, the dismantling of the License Raj in India, on firms innovation performance. Our results show that larger and more
The Effects of Employment Protection Legislation on Indian Manufacturing
This paper extends an earlier critique (Bhattacharjea 2006) of the empirical literature on labour regulation and industrial performance in India, but focuses more narrowly on the impact of legal
The Unequal Enforcement of Liberalization: Evidence from Russia's Reform of Business Regulation
We document the unequal enforcement of liberalization reform of business regulation across Russian regions with different governance institutions, which leads to unequal effects of liberalization.
Entry Liberalization and Inequality in Industrial Performance
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
The Role of Regulation on Entry : Evidence from the Italian Provinces
This paper studies the effects of differences in local administrative burdens in Italy in the years 2005–2007 preceding a major reform that sped up firm registration procedures. Combining regulatory
The Public Sector and the Misallocation of Labor: Evidence from a Policy Experiment in India
State-owned enterprises are often thought to represent a distortion in the labor market, but the implied efficiency losses have not been carefully estimated. This paper presents the first rigorous
Second , there is a literature that studies the effect of labor or entry regulation on economic performance (
In the postwar period, planned industrialization became a widespread development strategy for tackling economic backwardness. In the 1980s, however, amidst growing dissatisfaction about its results,
Entry Barriers and the Labor Market Outcomes of Incumbent Workers: Evidence from a Deregulation Reform in the German Crafts Sector
We study the labor market outcomes of a deregulation reform in Germany that removed licensing requirements to become self-employed in some occupations. Using longitudinal social security data, we
...
...

References

SHOWING 1-10 OF 170 REFERENCES
Entry Liberalization and Inequality in Industrial Performance
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
Can Labour Regulation Hinder Economic Performance? Evidence from India
This paper investigates whether the industrial relations climate in Indian States has affected the pattern of manufacturing growth in the period 1958-92. We show that pro-worker amendments to the
The effects of labor regulation upon industrial employment in India
This paper reviews the effects of legislation and government institutions upon labor costs and employment in the Indian manufacturing sector. It specifically examines wage determination, industrial
Labor Disputes and the Economics of Firm Geography: A Study of Domestic Investment in India
Abstract Acrimonious relations between employers and employees in developing countries have often been cited as impediments to progress. This article considers various measures of labor disputes and
From “Hindu Growth” to Productivity Surge: The Mystery of the Indian Growth Transition
This paper explores the causes of India's productivity surge around 1980, more than a decade before serious economic reforms were initiated. Trade liberalization, expansionary demand, a favorable
Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets
Product and labor market deregulation are fundamentally about reducing and redistributing rents, leading economic players to adjust in turn to this new distribution. Thus, even if deregulation
Trade Liberalization, Poverty, and Inequality: Evidence from Indian Districts
Although it is commonly believed that trade liberalization results in higher GDP, little is known about its effects on poverty and inequality. This paper uses the sharp trade liberalization in India
Factor Immobility and Regional Impacts of Trade Liberalization : Evidence on Poverty and Inequality from India
Although it is commonly believed that trade liberalization results in higher GDP, little is known about its effects on poverty and inequality. This paper uses the sharp trade liberalization in India
...
...