Does exposure to international trade have a pro-competitive effect on domestic pricing? This paper attends to this question in two stages: first, by developing a simple methodology to test the above proposition by linking domestic pricing behaviour to external competition via a simple mark-up technology; next, disaggregated Indian manufacturing data is used to show that the sector is imperfectly competitive and that both price and quantity competition from abroad over the last twenty years has had a dampening effect on domestic pricing behaviour.
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Article provided by Department of Economics, Delhi School of Economics in its journal Indian Economic Review.
Volume (Year): 34 (1999) Issue (Month): 2 (July) Pages: 113-126 Download reference. The following formats are available: HTML,
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Find related papers by JEL classification: C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
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