Stanford Conference
A conference was held at Stanford unversity on challanges of Economic Policy Reforms in Asia on June7, 2006. 20 scholars who participated in this conference discussed causes for low productivity in India as compared to China.
Total Factor Productivity in India is still abysmally lower than Chinaprimarily because of two reasons. One, that there exist barriers to technology diffusion in India. Two, there is misallocation of resources. Misallocation is because capital and labour are inefficiently allocated.
What India requires in this milieu is flexile labour policies and prvisions for quick entry and exit of firms.This will result in diffusion of optimal technology in larger geographical area.
Total Factor Productivity in India is still abysmally lower than Chinaprimarily because of two reasons. One, that there exist barriers to technology diffusion in India. Two, there is misallocation of resources. Misallocation is because capital and labour are inefficiently allocated.
What India requires in this milieu is flexile labour policies and prvisions for quick entry and exit of firms.This will result in diffusion of optimal technology in larger geographical area.
posted by Sartaj Singh at 10:40 PM
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