Amit K. Khandelwal

Multi-product Firms and Product Turnover in the Developing World: Evidence from India

This paper provides evidence on the patterns of multiproduct firm production in a large developing country, India, during a period that spans market reforms. In the cross-section, multiproduct firms in India look remarkably similar to their U.S. counterparts. The time-series patterns, however, exhibit important differences. In contrast to evidence from the United States, product churning, particularly product rationalization, is far less common in India. We find no link between product rationalization and output tariff declines following Indias 1991 trade liberalization. The lack of creative destruction is consistent with the role of industrial regulation in preventing an efficient allocation of resources.

Detecting the Boundaries of Urban Areas in India: A Dataset for Pixel-Based Image Classification in Google Earth Engine

Urbanization often occurs in an unplanned and uneven manner, resulting in profound changes in patterns of land cover and land use. Understanding these changes is fundamental for devising environmentally responsible approaches to economic development in the rapidly urbanizing countries of the emerging world. One indicator of urbanization is built-up land cover that can be detected and quantified at scale using satellite imagery and cloud-based computational platforms. This process requires reliable and comprehensive ground-truth data for supervised classification and for validation of classification products. We present a new dataset for India, consisting of 21,030 polygons from across the country that were manually classified as “built-up” or “not built-up,” which we use for supervised image classification and detection of urban areas. As a large and geographically diverse country that has been undergoing an urban transition, India represents an ideal context to develop and test approaches for the detection of features related to urbanization. We perform the analysis in Google Earth Engine (GEE) using three types of classifiers, based on imagery from Landsat 7 and Landsat 8 as inputs. The methodology produces high-quality maps of built-up areas across space and time. Although the dataset can facilitate supervised image classification in any platform, we highlight its potential use in GEE for temporal large-scale analysis of the urbanization process. Our methodology can easily be applied to other countries and regions.

Organizational Barriers to Technology Adoption: Evidence from Soccer-Ball Producers in Pakistan

This paper studies technology adoption in a cluster of soccer-ball producers in Sialkot, Pakistan. We invented a new cutting technology that reduces waste of the primary raw material and gave the technology to a random subset of producers. Despite the arguably unambiguous net benefits of the technology for nearly all firms, after 15 months take-up remained puzzlingly low. We hypothesize that an important reason for the lack of adoption is a misalignment of incentives within firms: the key employees (cutters and printers) are typically paid piece rates, with no incentive to reduce waste, and the new technology slows them down, at least initially. Fearing reductions in their effective wage, employees resist adoption in various ways, including by misinforming owners about the value of the technology. To investigate this hypothesis, we implemented a second experiment among the firms that originally received the technology: we offered one cutter and one printer per firm a lump-sum payment, approximately equal to a monthly wage, conditional on them demonstrating competence in using the technology in the presence of the owner. This incentive payment, small from the point of view of the firm, had a significant positive effect on adoption. We interpret the results as supportive of the hypothesis that misalignment of incentives within firms is an important barrier to technology adoption in our setting.

Detecting Urban Markets with Satellite Imagery: An Application to India

We propose a methodology for defining urban markets based on built-up land-cover classified from daytime satellite imagery. Compared to markets defined using minimum thresholds for nighttime light intensity, daytime imagery identify an order of magnitude more markets, capture more of Indias urban population, are more realistically jagged in shape, and reveal more variation in the spatial distribution of economic activity. We conclude that daytime satellite data are a promising source for the study of urban forms.

Variety In, Variety Out: Imported Input and Product Scope Expansion in India

This chapter discusses and extends the findings of recent research which examines the role of imported inputs in fostering domestic product growth in India. India’s trade liberalization during the 1990s resulted in substantial increases in the volume and variety of imported inputs. This period also witnessed an expansion of product lines by Indian firms. We explore the causal relationship between increased access to imported inputs through lower input tariffs and the subsequent increase in firms’ product mix. Our analysis suggests that lower input tariffs accounted for at least 8 percent of overall manufacturing growth. We examine firm‐level imported input use in detail, and explore heterogeneity of the impact across industries and states, as well as examine the robustness to other policy reforms implemented during this period.