Diagnosing Development Bottlenecks : China and India
Although it had a a lower income level than India in 1980, China's 2006 per capita gross domestic product stands more than twice that of India's. This paper investigates the role of the business environment in explaining China's prod...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110425160503 http://hdl.handle.net/10986/3405 |
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okr-10986-3405 |
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oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ADOPTION OF INFORMATION ADVERSE EFFECTS AVERAGE PRODUCTIVITY BACKUP BACKUP POWER BANKING SYSTEM BANKS BOOK VALUE BUSINESS CLIMATE BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS BUSINESS OPPORTUNITIES BUSINESSES CAPABILITY CAPITAL EXPENDITURE COBB-DOUGLAS PRODUCTION FUNCTION COLLECTIVE AGREEMENT COMPARATIVE ANALYSIS COMPETITIVE MARKET COMPETITIVENESS COMPUTER TECHNOLOGY COMPUTERS CONTRACT LABOR CONTROL SYSTEM CORRELATION MATRIX COUNTRY-SPECIFIC FACTORS CREATING JOBS CROSS-SECTIONAL DATA DEBT DEMOCRACY DEREGULATION DEVELOPMENT ECONOMICS ECONOMIC ANALYSIS ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC REFORM ECONOMICS ECONOMIES OF SCALE ELECTRICITY EMPIRICAL ANALYSIS EMPLOYEE EMPLOYMENT EMPLOYMENT SIZE ENTERPRISE SECTOR ENTERPRISE SURVEYS ENTREPRENEURSHIP ENVIRONMENTAL ENVIRONMENTS EQUILIBRIUM EQUIPMENT EXPENDITURES FINANCIAL REFORM FINANCIAL SYSTEM FIRM ENTRY FIRM LEVEL FIRM PERFORMANCE FIRM PRODUCTIVITY FIRM SIZE FIRM-LEVEL PRODUCTIVITY FOREIGN INVESTMENT GEOGRAPHIC REGIONS GLOBALIZATION GOVERNMENT INTERVENTION GROWTH STRATEGIES HUMAN CAPITAL IMPLEMENTATIONS INCOME INDUSTRIAL EMPLOYMENT INFORMATION TECHNOLOGY INNOVATION INNOVATIONS INSTALLATION INTERMEDIATE INPUTS JOB CREATION JOB SECURITY JOBS LABOR DEMAND LABOR DISPUTES LABOR FORCE LABOR FORCE SKILLS LABOR LAWS LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET REFORMS LABOR MARKETS LABOR PRODUCTIVITY LABOR REGULATION LABOR REGULATIONS LARGE CITIES LICENSE LITERACY RATE LOCAL FIRMS LOCAL INFRASTRUCTURE LOCAL LABOR MARKET MANUFACTURING MANUFACTURING INDUSTRIES MARKET MECHANISM MATERIAL MEDIUM ENTERPRISE NETWORKS OPEN ACCESS OPERATING COSTS OUTPUTS PERMANENT WORKERS PHYSICAL INFRASTRUCTURE POLICY ENVIRONMENT POLICY FORMULATION POLITICAL ECONOMY PRIVATE FIRMS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCERS PRODUCT MARKET PRODUCTION COSTS PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTION PROCESSES PRODUCTIVE FIRM PRODUCTIVE FIRMS PRODUCTIVE SECTOR PRODUCTIVITY DIFFERENTIAL PRODUCTIVITY EFFECTS PRODUCTIVITY GAP PRODUCTIVITY GROWTH PROFITABILITY PUBLIC POLICY RELIABILITY RESOURCE ALLOCATION RESULT RESULTS RETAIL STORES SAVINGS SERVICE INDUSTRIES SKILLED LABOR SKILLED WORKERS SOCIAL DEVELOPMENT STATE BANKS STATE-OWNED ENTERPRISES TECHNOLOGICAL DEVELOPMENTS TELECOMMUNICATIONS TEMPORARY WORKERS TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TRADE UNIONS TRAGEDY OF THE COMMONS TRANSACTION TRANSACTION COSTS TRANSITION ECONOMIES TRANSMISSION TRANSPORT USE VALUE USES WEB WELFARE EFFECTS WORKER WORKING CAPITAL |
| spellingShingle |
ACCOUNTING ADOPTION OF INFORMATION ADVERSE EFFECTS AVERAGE PRODUCTIVITY BACKUP BACKUP POWER BANKING SYSTEM BANKS BOOK VALUE BUSINESS CLIMATE BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS BUSINESS OPPORTUNITIES BUSINESSES CAPABILITY CAPITAL EXPENDITURE COBB-DOUGLAS PRODUCTION FUNCTION COLLECTIVE AGREEMENT COMPARATIVE ANALYSIS COMPETITIVE MARKET COMPETITIVENESS COMPUTER TECHNOLOGY COMPUTERS CONTRACT LABOR CONTROL SYSTEM CORRELATION MATRIX COUNTRY-SPECIFIC FACTORS CREATING JOBS CROSS-SECTIONAL DATA DEBT DEMOCRACY DEREGULATION DEVELOPMENT ECONOMICS ECONOMIC ANALYSIS ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC REFORM ECONOMICS ECONOMIES OF SCALE ELECTRICITY EMPIRICAL ANALYSIS EMPLOYEE EMPLOYMENT EMPLOYMENT SIZE ENTERPRISE SECTOR ENTERPRISE SURVEYS ENTREPRENEURSHIP ENVIRONMENTAL ENVIRONMENTS EQUILIBRIUM EQUIPMENT EXPENDITURES FINANCIAL REFORM FINANCIAL SYSTEM FIRM ENTRY FIRM LEVEL FIRM PERFORMANCE FIRM PRODUCTIVITY FIRM SIZE FIRM-LEVEL PRODUCTIVITY FOREIGN INVESTMENT GEOGRAPHIC REGIONS GLOBALIZATION GOVERNMENT INTERVENTION GROWTH STRATEGIES HUMAN CAPITAL IMPLEMENTATIONS INCOME INDUSTRIAL EMPLOYMENT INFORMATION TECHNOLOGY INNOVATION INNOVATIONS INSTALLATION INTERMEDIATE INPUTS JOB CREATION JOB SECURITY JOBS LABOR DEMAND LABOR DISPUTES LABOR FORCE LABOR FORCE SKILLS LABOR LAWS LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET REFORMS LABOR MARKETS LABOR PRODUCTIVITY LABOR REGULATION LABOR REGULATIONS LARGE CITIES LICENSE LITERACY RATE LOCAL FIRMS LOCAL INFRASTRUCTURE LOCAL LABOR MARKET MANUFACTURING MANUFACTURING INDUSTRIES MARKET MECHANISM MATERIAL MEDIUM ENTERPRISE NETWORKS OPEN ACCESS OPERATING COSTS OUTPUTS PERMANENT WORKERS PHYSICAL INFRASTRUCTURE POLICY ENVIRONMENT POLICY FORMULATION POLITICAL ECONOMY PRIVATE FIRMS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCERS PRODUCT MARKET PRODUCTION COSTS PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTION PROCESSES PRODUCTIVE FIRM PRODUCTIVE FIRMS PRODUCTIVE SECTOR PRODUCTIVITY DIFFERENTIAL PRODUCTIVITY EFFECTS PRODUCTIVITY GAP PRODUCTIVITY GROWTH PROFITABILITY PUBLIC POLICY RELIABILITY RESOURCE ALLOCATION RESULT RESULTS RETAIL STORES SAVINGS SERVICE INDUSTRIES SKILLED LABOR SKILLED WORKERS SOCIAL DEVELOPMENT STATE BANKS STATE-OWNED ENTERPRISES TECHNOLOGICAL DEVELOPMENTS TELECOMMUNICATIONS TEMPORARY WORKERS TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TRADE UNIONS TRAGEDY OF THE COMMONS TRANSACTION TRANSACTION COSTS TRANSITION ECONOMIES TRANSMISSION TRANSPORT USE VALUE USES WEB WELFARE EFFECTS WORKER WORKING CAPITAL Li, Wei Mengistae, Taye Xu, Lixin Colin Diagnosing Development Bottlenecks : China and India |
| geographic_facet |
South Asia East Asia and Pacific India China |
| relation |
Policy Research working paper ; no. WPS 5641 |
| description |
Although it had a a lower income level
than India in 1980, China's 2006 per capita gross
domestic product stands more than twice that of
India's. This paper investigates the role of the
business environment in explaining China's productivity
advantage using recent firm-level survey data. The analysis
finds that China has better infrastructure, more skilled
workers, and more labor-hiring flexibility than India, but a
worse access to finance and higher regulatory burden.
Infrastructure appears to be a key constraint for India: it
lags significantly behind China, yet it has important
indirect effects for the effectiveness of labor flexibility.
Labor flexibility is also likely a major constraint for
India, as evident in the predominance of small firms, the
importance of firm size in accounting for India's
disadvantage in productivity, and the complementarity of
proxies of labor flexibility with infrastructure and access
to finance. Interestingly, regulatory uncertainty has
adverse effects in India but not in China. The empirical
analysis suggests that it is important to consider
country-specific growth bottlenecks and the indirect effects
of policy reforms. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Li, Wei Mengistae, Taye Xu, Lixin Colin |
| author_facet |
Li, Wei Mengistae, Taye Xu, Lixin Colin |
| author_sort |
Li, Wei |
| title |
Diagnosing Development Bottlenecks : China and India |
| title_short |
Diagnosing Development Bottlenecks : China and India |
| title_full |
Diagnosing Development Bottlenecks : China and India |
| title_fullStr |
Diagnosing Development Bottlenecks : China and India |
| title_full_unstemmed |
Diagnosing Development Bottlenecks : China and India |
| title_sort |
diagnosing development bottlenecks : china and india |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110425160503 http://hdl.handle.net/10986/3405 |
| _version_ |
1764386931578241024 |
| spelling |
okr-10986-34052021-04-23T14:02:09Z Diagnosing Development Bottlenecks : China and India Li, Wei Mengistae, Taye Xu, Lixin Colin ACCOUNTING ADOPTION OF INFORMATION ADVERSE EFFECTS AVERAGE PRODUCTIVITY BACKUP BACKUP POWER BANKING SYSTEM BANKS BOOK VALUE BUSINESS CLIMATE BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS BUSINESS OPPORTUNITIES BUSINESSES CAPABILITY CAPITAL EXPENDITURE COBB-DOUGLAS PRODUCTION FUNCTION COLLECTIVE AGREEMENT COMPARATIVE ANALYSIS COMPETITIVE MARKET COMPETITIVENESS COMPUTER TECHNOLOGY COMPUTERS CONTRACT LABOR CONTROL SYSTEM CORRELATION MATRIX COUNTRY-SPECIFIC FACTORS CREATING JOBS CROSS-SECTIONAL DATA DEBT DEMOCRACY DEREGULATION DEVELOPMENT ECONOMICS ECONOMIC ANALYSIS ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC REFORM ECONOMICS ECONOMIES OF SCALE ELECTRICITY EMPIRICAL ANALYSIS EMPLOYEE EMPLOYMENT EMPLOYMENT SIZE ENTERPRISE SECTOR ENTERPRISE SURVEYS ENTREPRENEURSHIP ENVIRONMENTAL ENVIRONMENTS EQUILIBRIUM EQUIPMENT EXPENDITURES FINANCIAL REFORM FINANCIAL SYSTEM FIRM ENTRY FIRM LEVEL FIRM PERFORMANCE FIRM PRODUCTIVITY FIRM SIZE FIRM-LEVEL PRODUCTIVITY FOREIGN INVESTMENT GEOGRAPHIC REGIONS GLOBALIZATION GOVERNMENT INTERVENTION GROWTH STRATEGIES HUMAN CAPITAL IMPLEMENTATIONS INCOME INDUSTRIAL EMPLOYMENT INFORMATION TECHNOLOGY INNOVATION INNOVATIONS INSTALLATION INTERMEDIATE INPUTS JOB CREATION JOB SECURITY JOBS LABOR DEMAND LABOR DISPUTES LABOR FORCE LABOR FORCE SKILLS LABOR LAWS LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET REFORMS LABOR MARKETS LABOR PRODUCTIVITY LABOR REGULATION LABOR REGULATIONS LARGE CITIES LICENSE LITERACY RATE LOCAL FIRMS LOCAL INFRASTRUCTURE LOCAL LABOR MARKET MANUFACTURING MANUFACTURING INDUSTRIES MARKET MECHANISM MATERIAL MEDIUM ENTERPRISE NETWORKS OPEN ACCESS OPERATING COSTS OUTPUTS PERMANENT WORKERS PHYSICAL INFRASTRUCTURE POLICY ENVIRONMENT POLICY FORMULATION POLITICAL ECONOMY PRIVATE FIRMS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCERS PRODUCT MARKET PRODUCTION COSTS PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTION PROCESSES PRODUCTIVE FIRM PRODUCTIVE FIRMS PRODUCTIVE SECTOR PRODUCTIVITY DIFFERENTIAL PRODUCTIVITY EFFECTS PRODUCTIVITY GAP PRODUCTIVITY GROWTH PROFITABILITY PUBLIC POLICY RELIABILITY RESOURCE ALLOCATION RESULT RESULTS RETAIL STORES SAVINGS SERVICE INDUSTRIES SKILLED LABOR SKILLED WORKERS SOCIAL DEVELOPMENT STATE BANKS STATE-OWNED ENTERPRISES TECHNOLOGICAL DEVELOPMENTS TELECOMMUNICATIONS TEMPORARY WORKERS TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TRADE UNIONS TRAGEDY OF THE COMMONS TRANSACTION TRANSACTION COSTS TRANSITION ECONOMIES TRANSMISSION TRANSPORT USE VALUE USES WEB WELFARE EFFECTS WORKER WORKING CAPITAL Although it had a a lower income level than India in 1980, China's 2006 per capita gross domestic product stands more than twice that of India's. This paper investigates the role of the business environment in explaining China's productivity advantage using recent firm-level survey data. The analysis finds that China has better infrastructure, more skilled workers, and more labor-hiring flexibility than India, but a worse access to finance and higher regulatory burden. Infrastructure appears to be a key constraint for India: it lags significantly behind China, yet it has important indirect effects for the effectiveness of labor flexibility. Labor flexibility is also likely a major constraint for India, as evident in the predominance of small firms, the importance of firm size in accounting for India's disadvantage in productivity, and the complementarity of proxies of labor flexibility with infrastructure and access to finance. Interestingly, regulatory uncertainty has adverse effects in India but not in China. The empirical analysis suggests that it is important to consider country-specific growth bottlenecks and the indirect effects of policy reforms. 2012-03-19T18:01:53Z 2012-03-19T18:01:53Z 2011-04-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110425160503 http://hdl.handle.net/10986/3405 English Policy Research working paper ; no. WPS 5641 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper South Asia East Asia and Pacific India China |