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Competition and labor productivity in India's retail stores

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  • Amin, Mohammad

Abstract

Using newly available data compiled by the World Bank's Enterprise Surveys, we analyze the relationship between competition and output per worker for retail stores in India. The OLS and IV regressions show a significant positive relationship between competition and output per worker. There is also considerable scope for pro-competitive reforms with 62 percent of the surveyed stores reporting facing no significant competition. According to our conservative estimates, pro-competitive reforms could improve labor productivity by as much as 36 percent of its current level.

Suggested Citation

  • Amin, Mohammad, 2015. "Competition and labor productivity in India's retail stores," Journal of Asian Economics, Elsevier, vol. 41(C), pages 57-68.
  • Handle: RePEc:eee:asieco:v:41:y:2015:i:c:p:57-68
    DOI: 10.1016/j.asieco.2015.10.003
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    Keywords

    D24; L11; L81; Competition; Firm-performance; Labor productivity;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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