File2-page166 - within the same three-digit sector...

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Aghion et al. (2003) Openness and Economic Performance Production Production Contraction Contraction Production Production Expansion Expansion Production Production Expansion Expansion Production Contraction T ' Y !##' !##' Y /## /## possibly ' Y <0 Y <0 % $ $ P DD SS’ SS CONSTRAINTS TO PRODUCTION POST-REFORM EQUILIBRIUM WITH PRICE ADJUSTMENT Y STATE A (PRO-WORKER) STATE B (PRO-EMPLOYER) T 1 1 where y ist is a (logged) three-digit state-industry outcome variable, d it is a dummy variable which switches on in the year a three-digit industry is de-licensed and then stays on thereafter, r st is the labor regulation measure measured in state s at time t , α is is a state-industry Fxed effect, β t is a year effect. Conclusions Nationwide de-licensing reform has heterogeneous impact on state-industries
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Unformatted text preview: within the same three-digit sector depending on the state of labor market institutions in an Indian state Interactions between product market regulation (e.g. de-licensing, tariff reductions) and labor market regulation important in determining indus-trial performance at the state level Local policy and institutional choices will have a central bearing on whether a region will grow as liberalisation and globalisation proceed Rethinking redistribution: achieving equity goals via labor market regu-lations seems increasingly costly in a fast globalising world Development Economics, LSE Summer School 2007 163...
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