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How Efficiently is Capital Allocated? Evidence from the Knitted Garment Industry in Tirupur
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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Citations
Cites
The analysis of household surveys: A microeconometric approach to development policy
Deaton, A. (1997) · doi:10.1596/0-8018-5254-4 · Cited by 4,877
On the Size Distribution of Business Firms
Lucas, R. E. (1978) · The Bell Journal of Economics · doi:10.2307/3003596 · Cited by 3,236
Cited by
Hausmann, R., Hwang, J., & Rodrik, D. (2007) · Journal of Economic Growth · doi:10.1007/s10887-006-9009-4 · Cited by 2,333
Migration networks and microenterprises in Mexico
Woodruff, C., & Zenteno, R. (2007) · Journal of Development Economics · doi:10.1016/j.jdeveco.2006.03.006 · Cited by 894
Will digital technologies transform agriculture in developing countries?
Deichmann, U., Goyal, A., & Mishra, D. (2016) · Agricultural Economics · doi:10.1111/agec.12300 · Cited by 587
Hausmann, R., Hwang, J., & Rodrik, D. (2005) · SSRN Electronic Journal · doi:10.2139/ssrn.896243 · Cited by 579
Financial Frictions and the Persistence of History: A Quantitative Exploration
Buera, F. J., & Shin, Y. (2013) · Journal of Political Economy · doi:10.1086/670271 · Cited by 451
Metadata
- Authors
- Banerjee, A., & Munshi, K.
- Venue
- Review of Economic Studies
- Publisher
- Oxford University Press (OUP)
- 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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- 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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