Deregulation and Firm Investment : Evidence from the Dismantling of the License System in India

Kandilov, Ivan T. ; Leblebicioglu, Asli ; Manghnani, Ruchita

World Bank, Washington, DC

关键词: deregulation;    investment;    licensing;    credit conditions;    access to finance;   

DOI  :  10.1596/1813-9450-7884
RP-ID  :  WPS7884

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper analyzes analyze the impactof deregulatory reforms in India during the 1990s, whicheliminated compulsory industrial licensing, on manufacturingfirms' investment decisions. The paper finds aneconomically and statistically significant positive effectof delicensing on investment. It also shows that firms instates with better credit conditions benefitted more fromthe removal of licenses. Moreover, the analysis demonstratesthat the increase in investment was predominantly driven bysmaller firms.