Click here for search results
Size and age of establishments: evidence from developing countries, Volume 1
 
Author:Ayyagari, Meghana; Demirguc-Kunt, Asli; Maksimovic, Vojislav; Country:India;
Date Stored:2013/12/09Document Date:2013/12/01
Document Type:Policy Research Working PaperSubTopics:Scientific Research & Science Parks; Banks & Banking Reform; Science Education; Microfinance; Labor Markets
Language:EnglishRegion:South Asia
Report Number:WPS6718Collection Title:Policy Research working paper ; no. WPS 6718
Volume No:1  

Summary: Survey data from 120 developing countries are used to examine the relation between establishment size and age in the formal sector. Existing research suggests that manufacturing establishments in developing countries do not grow over time, most likely because of market imperfections and regulations. To the contrary, this paper finds that the average plant in developing countries that is more than 40 years old employs almost five times as many workers as the average plant that is five years old or younger. The analysis finds consistent evidence when it looks within a large country, India, based on detailed manufacturing census data over 23 years. It also finds that differences in financial development across Indian states, while substantial, have a minor effect on firm growth, consistent with inefficiency of state-owned financial systems. These results hold controlling for differences in labor regulations across states, capital intensity, labor regulations, and firms born before and after the major reforms.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 77 pagesOfficial version*5.39 (approx.)
TextText version**
How To Order

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.



Permanent URL for this page: http://go.worldbank.org/BNCB511IQ0