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Environmental Impact of India’s Trade Liberalization

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  • Jha, Shreyasi
  • Gamper-Rabindran, Shanti

Abstract

India's liberalization program of 1991 reduced trade barriers and removed investment restrictions across industries. Using a unique industry level dataset aggregated at the all-India level for all manufacturing industries, we compare the pre and post-liberalization periods to examine if India's domestic production and exports showed a greater increase in dirty industries relative to cleaner ones. We also examine whether there has been a greater inflow of FDI into pollution intensive sectors in the post-liberalization period. Our findings indicate that exports and FDI grew in the more polluting sectors relative to the less polluting sectors in the post-liberalization period.

Suggested Citation

  • Jha, Shreyasi & Gamper-Rabindran, Shanti, 2004. "Environmental Impact of India’s Trade Liberalization," Conference papers 331181, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331181
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    References listed on IDEAS

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