File2-page158 - – subsequently Rao/Singh coming to power after Rajiv Gandhi was assas-sinated Data We attach 3-digit identiFers to all industries

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Aghion et al. (2003) Openness and Economic Performance WWI planning gradually replaced laissez faire as strategy for promoting industrial development 1951 Industries Development and Regulation Act – central planning act “It is hereby declared that it is expedient in the public inter- est that the Union should take under its control the industries speciFed in the ±irst Schedule” Licensing became key instrument of central control over industrial devel- opment – Frm needed to obtain license to establish new factory, expand capacity, manufacture new articles or change location. The Fall of the License Raj By 1970s, clear that things not going according to plan – low rates of growth and industrialization – East Asian economies surging ahead De-licensing waves coincide with political change brought on by assassi- nation – Rajiv Gandhi coming to power after his mother was assassinated
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Unformatted text preview: – subsequently Rao/Singh coming to power after Rajiv Gandhi was assas-sinated Data We attach 3-digit identiFers to all industries licensed under the 1951 In-dustries Act and then use Handbook of Industrial Statistics and various notiFcations to create dummies which switch on when whole or part of 3-digit sector is de-licensed in 1980-1997 period We then merge this measure with annual three-digit industry-state-year panel data set for 1980-1997 – allows us to track changes in output, em-ployment, Fxed capital, number of factories and labor productivity across state-industries – roughly 85 industries × 16 states × 18 years gives us roughly 24000 observations to play with Code state level amendments to the 1947 Industrial Disputes Act as pro-worker; neutral; pro-employer; Development Economics, LSE Summer School 2007 155...
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This note was uploaded on 12/29/2011 for the course ECO 307 taught by Professor Dublin during the Spring '10 term at SUNY Stony Brook.

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