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The Misallocation of Land and other Factors of Production in India / Duranton, Gilles
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Duranton, Gilles
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Economic Theory & Research.
- Labor Policies.
- Land Misallocation.
- Misallocation Metrics.
- Output Misallocation.
- Private Sector Development.
- Productive Establishments.
- Property Markets.
- Urban Development.
- Urban Housing.
- Urban Services to the Poor.
- Urban Slums Upgrading.
- Local Subjects:
- Economic Theory & Research.
- Labor Policies.
- Land Misallocation.
- Misallocation Metrics.
- Output Misallocation.
- Private Sector Development.
- Productive Establishments.
- Property Markets.
- Urban Development.
- Urban Housing.
- Urban Services to the Poor.
- Urban Slums Upgrading.
- Physical Description:
- 1 online resource (65 pages)
- Place of Publication:
- Washington, D.C., The World Bank, 2015
- System Details:
- data file
- Summary:
- This paper quantifies the misallocation of manufacturing output and factors of production between establishments across Indian districts during 1989-2010. It first distills a number of stylized facts about misallocation in India, and demonstrates the validity of misallocation metrics by connecting them to regulatory changes in India that affected real property. With this background, the study next quantifies the implications and determinants of factor and output misallocation. Although more-productive establishments in India tend to produce more output, factors of production are grossly misallocated. A better allocation of output and factors of production is associated with greater output per worker. Misallocation of land plays a particularly important role in these challenges.
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