Tag
productivity_dispersion
2 findings
Firms & operationsCross-Country Productivity Dispersion and Management GapIndia's total factor productivity is approximately 40% of the US level; the 90th-to-10th percentile total factor productivity ratio is 5.0 in India and 4.9 in China versus 2.0 in US manufacturing; Indian manufacturing firms averaged a management score of 2.69 compared to 3.33 in the US due to a thick long tail of badly run plants.Observational StudyEconomics (general)Frictional Market Survival of Inefficient FirmsIndian woven cotton fabric imports faced a 35% tariff insulating domestic producers, while firm expansion was capped by male family member availability, maintaining low average firm size and wide TFP dispersion (90th-to-10th percentile ratio of 5.0).Observational Study