The Size Distribution of Manufacturing Plants and Development ePub (Adobe DRM) download by Siddharth Kothari

The Size Distribution of Manufacturing Plants and Development

INTERNATIONAL MONETARY FUND
Publication date: December 2014
ISBN: 9781498307413
Digital Book format: ePub (Adobe DRM)

Buy ePub

List price:
$9.00
Our price:
$6.99

You save: $2.01 (22%)
The typical size distribution of manufacturing plants in developing countries has a thick left tail compared to developed countries. The same holds across Indian states, with richer states having a much smaller share of their manufacturing employment in small plants. In this paper, I explore the hypothesis that this income-size relation arises from the fact that low income countries and states have high demand for low quality products which can be produced efficiently in small plants. I provide evidence which is consistent with this hypothesis from both the consumer and producer side. In particular, I show empirically that richer households buy higher price goods while larger plants produce higher price products (and use higher price inputs). I develop a model which matches these cross-sectional facts. The model features non-homothetic preferences with respect to quality on the consumer side. On the producer side, high quality production has higher marginal costs and requires higher fixed costs. These two features imply that high quality producers are larger on average and charge higher prices. The model can explain about forty percent of the cross-state variation in the left tail of manufacturing plants in India.
Please sign in to review this product.
Devices:
The Size Distribution of Manufacturing Plants and Development ePub (Adobe DRM) can be read on any device that can open ePub (Adobe DRM) files.

File Size:
2545 Kb
Language:
ENG
Copy From Text:
Disabled.
Printing:
Disabled.
Other books by Siddharth Kothari
South Africa ePub (Adobe DRM) download by Rahul Anand
South Africa
Rahul Anand & Siddharth Kothari
INTERNATIONAL MONETARY FUND, September 2016
ISBN: 9781498358934
Format: ePub, PDF
List Price: $9.00 Our price: $6.99