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Ruchita Manghnani
Ruchita Manghnani is a Senior Economist in the Finance, Competitiveness and Innovation Global Practice at the World Bank. Her research interests include productivity, trade, innovation, and gender. She has worked on several research and operational projects on these issues. Ruchita holds a PhD in Economics from the University of North Carolina at Chapel Hill.
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Implicit costs of factor allocation for Indian firms
Looking at variations in factor misallocation across states, Chaurey et al. measure trends in factor adjustment costs incurred by firms between 1999 and 2014. They find that adjustment costs for labour and land across India fell during this period, with the decline in labour adjustment costs declining significantly faster in states with fast growing manufacturing. They discuss other factors which affect adjustment costs, including firm size and governance quality of state, and the pattern between misallocation and low growth.
