IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper

Are China and India Backwards? Evidence from the 19th Century U.S. Census of Manufactures

  • Nicolas Ziebarth

    (Northwestern University)

Registered author(s):

    Hsieh and Klenow (2009) argue that a large fraction of aggregate TFP differences between the U.S. and the developing countries of China and India can be explained by capital misallocation. Their interpretation is that this misallocation is due to institutions and policies that distort resources away from productive firms in these developing countries. Using the U.S. Census of Manufactures from the late 19th century, I find that the level of dispersion in these modern, less developed countries is very similar to that in the U.S. at this time. What these countries share are not similar institutions rather similar levels of economic development. The institutions of the U.S. at this time were much better than India or China in terms of protecting property rights and allocating resources. This suggests that the Hsieh-Klenow measure of imperfections is not related to institutions but simply the level of development. I apply their accounting procedure to the U.S. and find that almost 15% of manufacturing TFP growth between 1890 and 1997 can be attributed to a more efficient intra-industry allocation of resources.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: https://economicdynamics.org/meetpapers/2011/paper_138.pdf
    Download Restriction: no

    Paper provided by Society for Economic Dynamics in its series 2011 Meeting Papers with number 138.

    as
    in new window

    Length:
    Date of creation: 2011
    Date of revision:
    Handle: RePEc:red:sed011:138
    Contact details of provider: Postal:
    Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

    Web page: http://www.EconomicDynamics.org/
    Email:


    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:red:sed011:138. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.