A significant amount of software development is being outsourced to countries such as India. Many Indian software firms …

, firm-level data from India's organized manufacturing sector to show that market-share reallocations did play an important … role in aggregate productivity gains immediately following the start of India's trade reforms in 1991. However, aggregate … attributed to India's trade liberalization and FDI reforms. Finally, we construct a panel dataset that allows us to track firms …

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 …

. We calibrate the model to firm-level data from the U.S. and India. We show that the model is quantitatively consistent … quantitative analysis shows that the low efficiency of delegation in India can account for 5% of productivity and 15% of income … differences between the U.S. and India in steady state. We also show that such inefficient delegation possibilities reduce the …