Nber Working Paper Series Misallocation and Manufacturing Tfp in China and India
نویسندگان
چکیده
Resource misallocation can lower aggregate total factor productivity (TFP). We use micro data on manufacturing establishments to quantify the potential extent of misallocation in China and India compared to the U.S. Compared to the U.S., we measure sizable gaps in marginal products of labor and capital across plants within narrowly-defined industries in China and 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. Chang-Tai Hsieh University of Chicago GSB 5807 S Woodlawn Ave Chicago, IL 60637 and NBER [email protected] Peter J. Klenow Department of Economics 579 Serra Mall Stanford University Stanford, CA 94305-6072 and NBER [email protected]
منابع مشابه
Quarterly Journal of Economics Misallocation and Manufacturing Tfp in China and India *
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 capit...
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