Chang, Tai Hsieh and Peter, J- Klenow (2007): Misallocation and manufacturing TFP in China and India. Published in: The Quaterly Journal Of Economics , Vol. 1, No. 1 (30. June 2007): pp. 1403-1447.
Download (458kB) | Preview
Resource misallocation can lower aggregate total factor productivity (TFP).We use microdata on manufacturing establishments to quantify the potential extent of misallocation in China and India versus the United States. We measure sizable gaps in marginal products of labor and capital across plants within narrowly defined industries in China and India compared with the United States. When capital and labor are hypothetically reallocated to equalize marginal products to the extent observed in the United States, we calculate manufacturing TFP gains of 30%–50% in China and 40%–60% in India.
|Item Type:||MPRA Paper|
|Original Title:||Misallocation and manufacturing TFP in China and India|
|Subjects:||D - Microeconomics > D2 - Production and Organizations
C - Mathematical and Quantitative Methods > C0 - General
A - General Economics and Teaching > A2 - Economic Education and Teaching of Economics > A20 - General
D - Microeconomics > D3 - Distribution
B - History of Economic Thought, Methodology, and Heterodox Approaches > B2 - History of Economic Thought since 1925
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling
B - History of Economic Thought, Methodology, and Heterodox Approaches > B0 - General
C - Mathematical and Quantitative Methods > C5 - Econometric Modeling
D - Microeconomics > D1 - Household Behavior and Family Economics
A - General Economics and Teaching > A1 - General Economics > A10 - General
D - Microeconomics > D4 - Market Structure, Pricing, and Design
C - Mathematical and Quantitative Methods > C4 - Econometric and Statistical Methods: Special Topics
D - Microeconomics > D0 - General
A - General Economics and Teaching > A3 - Collective Works > A30 - General
A - General Economics and Teaching > A3 - Collective Works
F - International Economics > F1 - Trade
|Depositing User:||salman ahmed|
|Date Deposited:||29. Nov 2011 12:18|
|Last Modified:||16. Feb 2013 07:07|
Aghion, Philippe, Robin Burgess, Stephen Redding, and Fabrizio Zilibotti, “The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India,” American Economic Review, 98 (2008), 1397–1412.
Alfaro, Laura, Andrew Charlton, and Fabio Kanczuk, “Plant-Size Distribution and Cross-Country Income Differences,” NBER Working Paper No. w14060, 2008.
Allen, Franklin, Rajesh Chakrabarti, Sankar De, Jun “QJ” Qian, andMeijun Qian, Financing Firms in India, manuscript, University of Pennsylvania, 2007.
Atkeson, Andrew G., and Patrick J. Kehoe, “Modeling and Measuring Organizational Capital,” Journal of Political Economy, 113 (2005), 1026–1053.
Banerjee, Abhijit, and Esther Duflo, “Growth Theory through the Lens of Development Economics,” in Handbook of Economic Growth, Vol. 1A, P. Aghion and S. Durlauf, eds. (Amsterdam: Elsevier, 2005, Chap. 7).
Barro, Robert, J., and Jong-Wha Lee, “International Data on Educational Attainment: Updates and Implications,” NBER Working Paper No. w7911, 2000.
Bartelsman, Eric, JohnHaltiwanger, and Stefano Scarpetta, Cross-Country Differences in Productivity: The Role of Allocative Efficiency, manuscript,University of Maryland, 2008.
Bergoeing, Raphael, Patrick J. Kehoe, Timothy J. Kehoe, and Raimundo Soto, Review of Economic Dynamics, 5 (2002), 166–205. Besley, Timothy, and Robin Burgess, “Can Labor Regulation Hinder Economic Performance? Evidence