Journal Article

How Efficiently is Capital Allocated? Evidence from the Knitted Garment Industry in Tirupur

Abhijit Banerjee and Kaivan Munshi

in The Review of Economic Studies

Published on behalf of Review of Economic Studies Ltd

Volume 71, issue 1, pages 19-42
Published in print January 2004 | ISSN: 0034-6527
Published online January 2004 | e-ISSN: 1467-937X | DOI: http://dx.doi.org/10.1111/0034-6527.00274
How Efficiently is Capital Allocated? Evidence from the Knitted Garment Industry in Tirupur

More Like This

Show all results sharing these subjects:

  • Manufacturing
  • Economic Development
  • Corporate Governance

GO

Show Summary Details

Preview

This paper studies the effect of community identity on investment behaviour in the knitted garment industry in the South Indian town of Tirupur. We document very large and systematic differences in both levels of capital stock and the capital intensity of production in firms owned by people from two different community groups. We argue that the differences in investment cannot be explained by productivity differences alone. We suggest that the most likely explanation is that the two communities differ in their access to capital.

Keywords: G31; G32; L67; O14

Journal Article.  11734 words.  Illustrated.

Subjects: Manufacturing ; Economic Development ; Corporate Governance

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.