This paper analyzes patterns of foreign direct investment in India. We investigate how labor conflict, credit constraints, and indicators of a state’s economic health influence location decisions of foreign firms. We account for the possible endogeneity of labor conflict variables in modeling...

This paper examines the performance of Indian manufacturing sector in terms of economic capacity utilization (CU), over 1974-1998. An attempt is also made to understand the impact of policy changes, inter alia, on the observed movements of CU. The economic CU, defined as the realization of...

Learning has been recognized as an important factor in explaining the growth of firms in both industrial organization theory and literature. However, few models have attempted to relate the learning and growth literature with the industrial policy regime, especially in economies heavily...

How do restrictions on entry and output affect aggregate productivity? I propose and implement a simple methodology that empirically identifies their separate effects on aggregate TFP and apply it to an analysis of the policy of industrial licensing in India. The licensing policy was notably...

India has undertaken extensive reforms in its manufacturing sector in the last two decades. However, an acceleration of growth in manufacturing, and a concomitant increase in employment, has eluded India. What might be holding the sector back? Using Annual Survey of Industries data at the...

Slowdown of industrial growth, particularly since the late sixties, had attracted a great deal of scholarly attention in India. That ongoing scholarly discussions created a debate which was in marked contrast to the relative consensus that prevailed in the professional economic circles in the...

The Companies Act went into effect in India on April 1, 2014 making it the first law in the world to mandate that companies spend 2% of their profits on corporate social responsibility (CSR) initiatives. We use panel data for 39,736 firms with a difference-in-difference model to estimate the...

This study is part of the broader barriers to entry project undertaken for the National Treasury and it assesses barriers to entry and expansion into the agro processing sector. It focuses on three agro-processing subsectors; poultry, milling and dairy. The paper draws on interviews conducted...

The paper provides insights about the automotive industry in Pakistan, first, by determining the structure and composition of the sector and its contribution to employment of the industry. We find out that although the industry is beginning to make a significant contribution to the Pakistani...

This paper provides an analysis of India’s existing regulatory regime and its evolution over the last 25 years, and the efforts to improve the regulatory framework as India has transitioned towards a market economy. The paper argues that while India has implemented many sector specific...