establishments to quantify the potential extent of misallocation in China and India compared to the U.S. Compared to the U.S., we … India. When capital and labor are hypothetically reallocated to equalize marginal products to the extent observed in the U ….S., we calculate manufacturing TFP gains of 30-50% in China and 40-60% in India …

intermediate to India and the U.S. in these respects: the average 40 year old Mexican plant employs twice as many workers as an … aggregate manufacturing productivity on the order of 25% in India and Mexico relative to the U.S …