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Two light-emitting diode samples are grown with InGaN and GaN underlying layers beneath the multiple quantum wells (MQWs), respectively. By measuring the carrier lifetime as a function of photon energy, it is found that the MQW with InGaN underlying layer has a higher degree of carrier localization. Comparison between the external quantum efficiency and injection current of these two samples reveals that efficiency droop at small injection current is attributed to the delocalization of carriers, while further droop at a higher injection current is due mostly to the carrier leakage demonstrated through temperature-dependent electroluminescence measurements.