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Cited by 244

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How Efficiently is Capital Allocated? Evidence from the Knitted Garment Industry in Tirupur

Banerjee, Abhijit, Munshi, Kaivan·2004·Review of Economic Studies

Abstract

This paper studies the effect of community identity on investment behaviour in the knitted garment industry in the South Indian town of Tirupur. We document very large and systematic differences in both levels of capital stock and the capital intensity of production in firms owned by people from two different community groups. We argue that the differences in investment cannot be explained by productivity differences alone. We suggest that the most likely explanation is that the two communities differ in their access to capital.

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Metadata

Authors
Banerjee, A., & Munshi, K.
Venue
Review of Economic Studies
Published
2004-01
Volume
71
Issue
1
Pages
19-42
ISSN
  • 0034-6527 (ISSN-L)
  • 1467-937X
OpenAlex
W2163239208
Cited by
244
References
2
FWCI
19.26
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: How Efficiently is Capital Allocated? Evidence from the Knitted Garment Industry in Tirupur. https://app.cochat.ai/papers/10.1111/0034-6527.00274
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Banerjee, A., & Munshi, K. (2004). How Efficiently is Capital Allocated? Evidence from the Knitted Garment Industry in Tirupur. Review of Economic Studies. https://doi.org/10.1111/0034-6527.00274

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.