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Economic Reforms And Entry Barriers In Indian Manufacturing

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  • M Suresh Babu
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    Abstract

    Analysis is made to the extent of barriers to entry in Indian manufacturing by empirically quantifying the height of these barriers. Econometric estimation of the height of the barriers for 1991 and 1996 shows that the height of barriers increased in 1996 at the aggregate level. An examination at the disaggregate level reveals that in almost all the industries examined from a sample of firms drawn from the CMIE the height of the barriers have increased in 1996 compared to 1991 [WP 331]

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    Paper provided by eSocialSciences in its series Working Papers with number id:978.

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    Date of creation: May 2007
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    Handle: RePEc:ess:wpaper:id:978

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    Keywords: Indian; manufacturing; CMIE; economic reforms; entry barriers; height of barriers; market;

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    1. Schwalbach, Joachim, 1987. "Entry by diversified firms into German industries," International Journal of Industrial Organization, Elsevier, vol. 5(1), pages 43-49, March.
    2. Gorecki, Paul K, 1976. "The Determinants of Entry by Domestic and Foreign Enterprises in Canadian Manufacturing Industries: Some Comments and Empirical Results," The Review of Economics and Statistics, MIT Press, vol. 58(4), pages 485-88, November.
    3. Wallis, Kenneth F, 1980. "Econometric Implications of the Rational Expectations Hypothesis," Econometrica, Econometric Society, vol. 48(1), pages 49-73, January.
    4. Dennis C. Mueller & John E. Tilton, 1969. "Research and Development Costs as a Barrier to Entry," Canadian Journal of Economics, Canadian Economics Association, vol. 2(4), pages 570-579, November.
    5. Orr, Dale, 1974. "An Index of Entry Barriers and Its Application to the Market Structure Performance Relationship," Journal of Industrial Economics, Wiley Blackwell, vol. 23(1), pages 39-49, September.
    6. C.C. von Weizsaker, 1980. "A Welfare Analysis of Barriers to Entry," Bell Journal of Economics, The RAND Corporation, vol. 11(2), pages 399-420, Autumn.
    7. Joseph Farrell, 1985. "Moral Hazard as an Entry Barrier," Working papers 387, Massachusetts Institute of Technology (MIT), Department of Economics.
    8. Paul E. Jensen & Kala Krishna, 1996. "Entry Policy in an Open Economy," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 31(1), pages 41-56, January.
    9. Pagan, Adrian, 1984. "Econometric Issues in the Analysis of Regressions with Generated Regressors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(1), pages 221-47, February.
    10. Wickens, Michael R, 1982. "The Efficient Estimation of Econometric Models with Rational Expectations," Review of Economic Studies, Wiley Blackwell, vol. 49(1), pages 55-67, January.
    11. N. S. Siddharthan & B. L. Pandit, 1992. "Deregulations, Entry and Industrial Performance: The Impact of Recent Indian Policy Changes," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 27, pages 377-384.
    12. Hause, John C & Du Rietz, Gunnar, 1984. "Entry, Industry Growth, and the Microdynamics of Industry Supply," Journal of Political Economy, University of Chicago Press, vol. 92(4), pages 733-57, August.
    13. Masson, Robert T & Shaanan, Joseph, 1986. "Excess Capacity and Limit Pricing: An Empirical Test," Economica, London School of Economics and Political Science, vol. 53(211), pages 365-78, August.
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