Other Article | Vox | December 12, 2009

The Transformation of India: Incumbent Control, Reforms, and Newcomers

by Laura Alfaro and Anusha Chari

Abstract

What microeconomic forces drove the structural transformation of India's economy in recent decades? This column studies firm-level data and portrays a dynamic economy driven by the growth of private and foreign firms. But the Indian economy did not go through an industrial shakeout phase driven by creative destruction. The endurance of incumbent firms prevented a dramatic microeconomic transformation.

Keywords: Transformation; Microeconomics; India;

Citation:

Alfaro, Laura, and Anusha Chari. "The Transformation of India: Incumbent Control, Reforms, and Newcomers." Vox (December 12, 2009).