Deregulation and Firm Investment

• Tác giả: Ivan T Kandilov
• Ngôn ngữ: eng
• Ký hiệu phân loại: 658.1 Organization and finance
• Thông tin xuất bản: Taylor and Francis, 2017
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 325692
• Chủ đề: 1. BUSINESS ENVIRONMENT; 2. DEREGULATION; 3. INVESTMENT; 4. INVESTMENT CLIMATE; 5. LICENSING

Tóm tắt

We analyse the impact of deregulatory reforms in India during the 1990s, which eliminated compulsory industrial licensing, on manufacturing firms' investment decisions. We find an economically and statistically significant positive effect of delicensing on investment. We also show that firms in states with better credit conditions benefitted more from the removal of licences. Moreover, our analysis demonstrates that the increase in investment was predominantly driven by smaller firms.