Though exit barriers intend to preserve employment, they often have adverse implications. They deter the entry of new firms and lock productive resources into low-productivity firms, ultimately lowering the economy's overall productivity. In this episode of All Things Policy, Sarthak Pradhan talks to Dr Shoumitro Chatterjee, who explains the extent of exit barriers in India and their consequences.

Link to the paper “No Country for Dying Firms: Evidence from India”

All Things Policy is a daily podcast on public policy brought to you by the Takshashila Institution, Bengaluru.

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