Anand, Abhishek, Subramanian, Arvind and Thomas, Naveen (2025) Multiplying multi-plants: A new and consequential phenomenon. Journal of Development Economics, 174: 103455. ISSN 0304-3878
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Abstract
Nearly all the literature using the Annual Survey of Industries (ASI) data in India has overlooked or not seriously incorporated the phenomenon of multi-plants, whereby a firm sets up multiple production facilities within a state. We show that multi-plants have grown dramatically over time, now accounting for 36 percent of employment in large firms (greater than 200 workers). The multi-plant phenomenon is important because it changes our understanding of the evolution of the size of large firms: contrary to recent research we find that accounting for multi-plants shows that large plants have not grown in size (and may even have shrunk) despite increasing recourse to contract labour. More broadly, any literature that focusses on firm size distribution without accounting for the multi-plant phenomenon is prone to measurement error.
Item Type: | Article |
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Keywords: | Plant size distribution | Multi-plants | Productivity | Regulatory risk |
Subjects: | Social Sciences and humanities > Economics, Econometrics and Finance > Economics Social Sciences and humanities > Social Sciences > Social Sciences (General) |
JGU School/Centre: | Jindal School of Government and Public Policy |
Depositing User: | Dharmveer Modi |
Date Deposited: | 04 Feb 2025 12:38 |
Last Modified: | 04 Feb 2025 12:38 |
Official URL: | https://doi.org/10.1016/j.jdeveco.2025.103455 |
URI: | https://pure.jgu.edu.in/id/eprint/9091 |
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