Replication data for: Market Integration, Demand, and the Growth of Firms: Evidence from a Natural Experiment in India
Principal Investigator(s): View help for Principal Investigator(s) Robert Jensen; Nolan H. Miller
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
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| Replication | 10/12/2019 06:55:AM | ||
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text/plain | 14.6 KB | 10/12/2019 02:55:AM |
Project Citation:
Jensen, Robert, and Miller, Nolan H. Replication data for: Market Integration, Demand, and the Growth of Firms: Evidence from a Natural Experiment in India. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113171V1
Project Description
Summary:
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In many developing countries, the average firm is small, does not grow and has low productivity. Lack of market integration and limited information on non-local products often leave consumers unaware of the prices and quality of non-local firms. They therefore mostly buy locally, limiting firms' potential market size (and competition). We explore this hypothesis using a natural experiment in the Kerala boat-building industry. As consumers learn more about non-local builders, high quality builders gain market share and grow, while low quality firms exit. Aggregate quality increases, as does labor specialization, and average production costs decrease. Finally, quality-adjusted consumer prices decline.
Scope of Project
JEL Classification:
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D22 Firm Behavior: Empirical Analysis
D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
L15 Information and Product Quality; Standardization and Compatibility
L25 Firm Performance: Size, Diversification, and Scope
L62 Automobiles; Other Transportation Equipment; Related Parts and Equipment
O12 Microeconomic Analyses of Economic Development
O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
D22 Firm Behavior: Empirical Analysis
D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
L15 Information and Product Quality; Standardization and Compatibility
L25 Firm Performance: Size, Diversification, and Scope
L62 Automobiles; Other Transportation Equipment; Related Parts and Equipment
O12 Microeconomic Analyses of Economic Development
O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
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