Growth responses to competitive shocks: Market structure dynamics under liberalisation
AbstractLiberalisation transforms market structures through the responses of incumbent firms and entrants to freedom of choice. Market shares tend to turn more volatile, and the agility and competitiveness of small, as against large, firms determine whether markets grow more concentrated, or less. We analyse the way these processes played out in Indian manufacturing industries over the 17-year period from 1981, spanning the domestic liberalisation of 1985 and the more comprehensive reforms of 1991. An observer looking at summary measures of market concentration might conclude that not much happened under either liberalisation episode. In fact, market share grew significantly more turbulent, and the relationship between market share-growth and initial share changed considerably. Domestic and comprehensive liberalisation saw different types of course corrections in these processes. But in both liberalisation episodes they tended to offset one another in their impact on observed market concentration, which therefore, changed little.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Structural Change and Economic Dynamics.
Volume (Year): 20 (2009)
Issue (Month): 2 (June)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/525148
Liberalisation Firm growth Turbulence Market structure India;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Satish Chand & Kunal Sen, 1996.
"Trade Liberalization and Productivity Growth: Evidence from Indian Manufacturing,"
Departmental Working Papers
1996-11, The Australian National University, Arndt-Corden Department of Economics.
- Chand, Satish & Sne, Kunal, 2002. "Trade Liberalization and Productivity Growth: Evidence from Indian Manufacturing," Review of Development Economics, Wiley Blackwell, vol. 6(1), pages 120-32, February.
- Satish Chand & Kunal Sen, 1996. "Trade Liberalization and Productivity Growth: Evidence from Indian Manufacturing," Trade and Development 96/11, Australian National University, Department of Economics.
- Rakesh Basant & Pankaj Chandra, 2002. "Building Technological Capabilities In A Liberalising Developing Economy: Firm Strategies And Public Policy," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(4-5), pages 399-421.
- M. Patibandla, 2002. "Policy Reforms and Evolution of Market Structure in an Emerging Economy: The Case of India," Journal of Development Studies, Taylor & Francis Journals, vol. 38(3), pages 95-118.
- Ghemawat, Pankaj & Khanna, Tarun, 1998. "The Nature of Diversified Business Groups: A Research Design and Two Case Studies," Journal of Industrial Economics, Wiley Blackwell, vol. 46(1), pages 35-61, March.
- John R. Cable, 1997. "Market Share Behavior And Mobility: An Analysis And Time-Series Application Notes," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 136-141, February.
- Ashok V. Desai, 1999. "The Economics and Politics of Transition to an Open Market Economy: India," OECD Development Centre Working Papers 155, OECD Publishing.
- Uma S. Kambhampati & Ashok Parikh, 2005. "Has liberalization affected profit margins in Indian Industry?," Bulletin of Economic Research, Wiley Blackwell, vol. 57(3), pages 273-304, 07.
- Jagdish N. Bhagwati & T. N. Srinivasan, 1975. "Foreign Trade Regimes and Economic Development: India," NBER Books, National Bureau of Economic Research, Inc, number bhag75-1, October.
- Rakesh Basant & Pankaj Chandra, 2002. "Building technological capabilities in a liberalising developing economy: Firm strategies and public policy," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(6), pages 1-23.
- Montek S. Ahluwalia, 2002. "Economic Reforms in India Since 1991: Has Gradualism Worked?," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 67-88, Summer.
- John Sutton, 1997. "Gibrat's Legacy," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 40-59, March.
If references are entirely missing, you can add them using this form.