How Efficiently is Capital How Efficiently the from Allocated ? Evidence in Tirupur Knitted Garment Industry

  • Munshi K
  • 31

    Readers

    Mendeley users who have this article in their library.
  • N/A

    Citations

    Citations of this article.

Abstract

This paper studies the effect of community identity on investment behaviour in the knitted garment industry in the South Indian town of Tirupur.We document very large and systematic differences in both levels of capital stock and the capital intensity of production in firms owned by people from two different community groups. We argue that the differences in investment cannot be explained by productivity differences alone.We suggest that the most likely explanation is that the two communities differ in their access to capital.

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Authors

  • Kaivan Munshi

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free