Size distribution of manufacturing plants and development /:
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 hyp...
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| Format: | Elektronisch E-Book |
| Sprache: | English |
| Veröffentlicht: |
[Washington, D.C.] :
International Monetary Fund,
©2014.
|
| Schriftenreihe: | IMF working paper ;
WP/14/236. |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Zusammenfassung: | 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.--Abstract. |
| Beschreibung: | "December 2014." "Research Department." |
| Beschreibung: | 1 online resource (60 pages) : color illustrations |
| Bibliographie: | Includes bibliographical references (pages 42-44). |
| ISBN: | 1498334393 9781498334396 9781498301879 1498301878 |
| ISSN: | 1018-5941 ; |
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| 245 | 1 | 0 | |a Size distribution of manufacturing plants and development / |c prepared by Siddharth Kothari. |
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| 500 | |a "Research Department." | ||
| 504 | |a Includes bibliographical references (pages 42-44). | ||
| 520 | |a 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.--Abstract. | ||
| 588 | 0 | |a Online resource; title from pdf title page (IMF.org Web site, viewed December 30, 2014). | |
| 505 | 0 | |a Cover; Contents; 1. Introduction; 2. Empirical Results; 2.1. Richer Households Buy Higher Price Goods; 2.2. Larger Plants Produce Higher Price Goods; 2.3. Larger Plants Use Higher Price Inputs; 3. Model; 3.1. Households; 3.2. Final Goods Producers; 3.3. Intermediate Goods Producers; 3.4. Equilibrium; 4. Calibration; 4.1. Production Parameters; 4.2. Utility Parameters; 5. Results; 5.1. Cross-section of Indian States; 5.2. India Over Time; 5.3. Parameter Sensitivity: Love of Variety; 5.4. Indian vs US; 6. Inter-State Trade; 7. Conclusion; References; A. Appendix. | |
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| 650 | 0 | |a Consumers |z India |x Econometric models. | |
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| 650 | 6 | |a Produits manufacturés |z Inde |x Modèles économétriques. | |
| 650 | 6 | |a Efficience dans l'industrie |z Inde |x Modèles économétriques. | |
| 650 | 6 | |a Consommateurs |z Inde |x Modèles économétriques. | |
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| author | Kothari, Siddharth |
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| contents | Cover; Contents; 1. Introduction; 2. Empirical Results; 2.1. Richer Households Buy Higher Price Goods; 2.2. Larger Plants Produce Higher Price Goods; 2.3. Larger Plants Use Higher Price Inputs; 3. Model; 3.1. Households; 3.2. Final Goods Producers; 3.3. Intermediate Goods Producers; 3.4. Equilibrium; 4. Calibration; 4.1. Production Parameters; 4.2. Utility Parameters; 5. Results; 5.1. Cross-section of Indian States; 5.2. India Over Time; 5.3. Parameter Sensitivity: Love of Variety; 5.4. Indian vs US; 6. Inter-State Trade; 7. Conclusion; References; A. Appendix. |
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| indexdate | 2024-11-26T14:49:17Z |
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| series2 | IMF working paper, |
| spelling | Kothari, Siddharth, author. Size distribution of manufacturing plants and development / prepared by Siddharth Kothari. [Washington, D.C.] : International Monetary Fund, ©2014. 1 online resource (60 pages) : color illustrations text txt rdacontent computer c rdamedia online resource cr rdacarrier IMF working paper, 1018-5941 ; WP/14/236 "December 2014." "Research Department." Includes bibliographical references (pages 42-44). 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.--Abstract. Online resource; title from pdf title page (IMF.org Web site, viewed December 30, 2014). Cover; Contents; 1. Introduction; 2. Empirical Results; 2.1. Richer Households Buy Higher Price Goods; 2.2. Larger Plants Produce Higher Price Goods; 2.3. Larger Plants Use Higher Price Inputs; 3. Model; 3.1. Households; 3.2. Final Goods Producers; 3.3. Intermediate Goods Producers; 3.4. Equilibrium; 4. Calibration; 4.1. Production Parameters; 4.2. Utility Parameters; 5. Results; 5.1. Cross-section of Indian States; 5.2. India Over Time; 5.3. Parameter Sensitivity: Love of Variety; 5.4. Indian vs US; 6. Inter-State Trade; 7. Conclusion; References; A. Appendix. Factories India Econometric models. India Supply and demand Econometric models. Consumers India Econometric models. Manufactures India Econometric models. Industrial efficiency India Econometric models. Usines Inde Modèles économétriques. Produits manufacturés Inde Modèles économétriques. Efficience dans l'industrie Inde Modèles économétriques. Consommateurs Inde Modèles économétriques. Consumers Econometric models fast Industrial efficiency Econometric models fast Manufactures Econometric models fast Supply and demand Econometric models fast India fast https://id.oclc.org/worldcat/entity/E39PBJmdx47cDXrRhBXHtbvPwC International Monetary Fund. Research Department, issuing body. http://id.loc.gov/authorities/names/n77001219 has work: Size distribution of manufacturing plants and development (Text) https://id.oclc.org/worldcat/entity/E39PCFJqQGrQJRjVgCwPtYYvBP https://id.oclc.org/worldcat/ontology/hasWork IMF working paper ; WP/14/236. http://id.loc.gov/authorities/names/no89010263 FWS01 ZDB-4-EBU FWS_PDA_EBU https://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&AN=1254032 Volltext |
| spellingShingle | Kothari, Siddharth Size distribution of manufacturing plants and development / IMF working paper ; Cover; Contents; 1. Introduction; 2. Empirical Results; 2.1. Richer Households Buy Higher Price Goods; 2.2. Larger Plants Produce Higher Price Goods; 2.3. Larger Plants Use Higher Price Inputs; 3. Model; 3.1. Households; 3.2. Final Goods Producers; 3.3. Intermediate Goods Producers; 3.4. Equilibrium; 4. Calibration; 4.1. Production Parameters; 4.2. Utility Parameters; 5. Results; 5.1. Cross-section of Indian States; 5.2. India Over Time; 5.3. Parameter Sensitivity: Love of Variety; 5.4. Indian vs US; 6. Inter-State Trade; 7. Conclusion; References; A. Appendix. Factories India Econometric models. Consumers India Econometric models. Manufactures India Econometric models. Industrial efficiency India Econometric models. Usines Inde Modèles économétriques. Produits manufacturés Inde Modèles économétriques. Efficience dans l'industrie Inde Modèles économétriques. Consommateurs Inde Modèles économétriques. Consumers Econometric models fast Industrial efficiency Econometric models fast Manufactures Econometric models fast Supply and demand Econometric models fast |
| title | Size distribution of manufacturing plants and development / |
| title_auth | Size distribution of manufacturing plants and development / |
| title_exact_search | Size distribution of manufacturing plants and development / |
| title_full | Size distribution of manufacturing plants and development / prepared by Siddharth Kothari. |
| title_fullStr | Size distribution of manufacturing plants and development / prepared by Siddharth Kothari. |
| title_full_unstemmed | Size distribution of manufacturing plants and development / prepared by Siddharth Kothari. |
| title_short | Size distribution of manufacturing plants and development / |
| title_sort | size distribution of manufacturing plants and development |
| topic | Factories India Econometric models. Consumers India Econometric models. Manufactures India Econometric models. Industrial efficiency India Econometric models. Usines Inde Modèles économétriques. Produits manufacturés Inde Modèles économétriques. Efficience dans l'industrie Inde Modèles économétriques. Consommateurs Inde Modèles économétriques. Consumers Econometric models fast Industrial efficiency Econometric models fast Manufactures Econometric models fast Supply and demand Econometric models fast |
| topic_facet | Factories India Econometric models. India Supply and demand Econometric models. Consumers India Econometric models. Manufactures India Econometric models. Industrial efficiency India Econometric models. Usines Inde Modèles économétriques. Produits manufacturés Inde Modèles économétriques. Efficience dans l'industrie Inde Modèles économétriques. Consommateurs Inde Modèles économétriques. Consumers Econometric models Industrial efficiency Econometric models Manufactures Econometric models Supply and demand Econometric models India |
| url | https://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&AN=1254032 |
| work_keys_str_mv | AT kotharisiddharth sizedistributionofmanufacturingplantsanddevelopment AT internationalmonetaryfundresearchdepartment sizedistributionofmanufacturingplantsanddevelopment |