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- W2807311631 abstract "In many developing countries, the average firm is small, does not grow, and has low productivity. Lack of market integration and limited information on non-local products often leave consumers unaware of the prices and quality of non-local firms. They therefore mostly buy locally, limiting firms’ potential market size (and competition). We explore this hypothesis using a natural experiment in the Kerala boat-building industry. As consumers learn more about non-local builders, high-quality builders gain market share and grow, while low-quality firms exit. Aggregate quality increases, as does labor specialization, and average production costs decrease. Finally, quality-adjusted consumer prices decline. (JEL D22, D83, L15, L25, L62, O12, O14)" @default.
- W2807311631 created "2018-06-13" @default.
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- W2807311631 date "2018-12-01" @default.
- W2807311631 modified "2023-10-18" @default.
- W2807311631 title "Market Integration, Demand, and the Growth of Firms: Evidence From a Natural Experiment in India" @default.
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- W2807311631 doi "https://doi.org/10.1257/aer.20161965" @default.
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