英文pdf文件。Misallocation and Manufacturing TFP
in China and India*
Chang-Tai Hsieh
University of California, Berkeley
Peter J. Klenow
Stanford University
July 2007
Resource misallocation can lower aggregate total factor productivity (TFP). We use
micro data on manufacturing establishments to quantify the extent of this misallocation in
China and India compared to the U.S. in recent years. Compared to the U.S., we measure
sizable gaps in marginal products of labor and capital across plants within narrowlydefined
industries in China and India. When capital and labor are hypothetically
reallocated to equalize marginal products to the extent observed in the U.S., we calculate
manufacturing TFP gains of 25-40% in China and 50-60% in India.
* We are indebted to Ryoji Hiraguchi and Romans Pancs for phenomenal research
assistance. We gratefully acknowledge the financial support of the Kauffman
Foundation. Hsieh thanks the Alfred P. Sloan Foundation and Klenow thanks SIEPR for
financial support. The research in this paper on U.S. manufacturing was conducted while
the authors were Special Sworn Status researchers of the U.S. Census Bureau at the
California Census Research Data Center at UC Berkeley. Research results and
conclusions expressed are those of the authors and do not necessarily reflect the views of
the Census Bureau. This paper has been screened to insure that no confidential data are
revealed. Emails: chsieh@econ.berkeley.edu and pete@klenow.net.