Deregulation and Firm Investment : Evidence from the Dismantling of the License System in India
This paper analyzes analyze the impact of deregulatory reforms in India during the 1990s, which eliminated compulsory industrial licensing, on manufacturing firms' investment decisions. The paper finds an economically and statistically signifi...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/293381478636583148/Deregulation-and-firm-investment-evidence-from-the-dismantling-of-the-license-system-in-India http://hdl.handle.net/10986/25686 |
| Summary: | This paper analyzes analyze the impact
of deregulatory reforms in India during the 1990s, which
eliminated compulsory industrial licensing, on manufacturing
firms' investment decisions. The paper finds an
economically and statistically significant positive effect
of delicensing on investment. It also shows that firms in
states with better credit conditions benefitted more from
the removal of licenses. Moreover, the analysis demonstrates
that the increase in investment was predominantly driven by
smaller firms. |
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