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The unequal effects of liberalization: evidence from dismantling the license Raj in India

Aghion, P.; Burgess, R.; Redding, S.; Ziilibotti, F.; (2006) The unequal effects of liberalization: evidence from dismantling the license Raj in India. (NBER Working Papers 12031). National Bureau of Economic Research: Cambridge, US. Green open access

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Abstract

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 grew more quickly than those in pro-worker environments.

Type: Working / discussion paper
Title: The unequal effects of liberalization: evidence from dismantling the license Raj in India
Open access status: An open access version is available from UCL Discovery
Publisher version: http://www.nber.org/papers/w12031
Language: English
Additional information: Please see http://eprints.ucl.ac.uk/17735/ for a version published in the American Economic Review
UCL classification: UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of SandHS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/17775
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