Trade liberalization, imported inputs and factor efficiencies: Evidence from the auto components industry in India
AbstractFirm-level data have been used to estimate changes in factor efficiencies_imported inputs being one of them-- over three sub-periods, 1977-84, 1985-91 and 1992-99 respectively denoting eras before liberalization, partial liberalization of the automotive industries and economy-wide liberalization. We see that the average size of firms has increased from that in the protected regime as the degree of liberalization has advanced. We find that the substitutability among inputs changed over the three sub-periods. We also find that the marginal products of all the inputs are very heterogeneous among firms in each period. The distributions of marginal product of labour and domestic materials and has moved to the left in the later periods while that of capital has moved to the right. The distribution of marginal product of imported materials first moved to the right and then to the left as compared to the first period. Overall the smaller firms benefited more in the earlier periods and bigger ones in the last period.
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 InfoPaper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 04-05.
Length: 21 pages
Date of creation: Feb 2004
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-06-02 (All new papers)
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.:
- Harrison, Ann E., 1994. "Productivity, imperfect competition and trade reform : Theory and evidence," Journal of International Economics, Elsevier, vol. 36(1-2), pages 53-73, February.
- Mundlak, Yair, 1996. "Production Function Estimation: Reviving the Primal," Econometrica, Econometric Society, vol. 64(2), pages 431-38, March.
- Krishna, Pravin & Mitra, Devashish, 1998.
"Trade liberalization, market discipline and productivity growth: new evidence from India,"
Journal of Development Economics,
Elsevier, vol. 56(2), pages 447-462, August.
- Pravin Krishna & Devashish Mitra, . "Trade Liberalization, Market Discipline and Productivity Growth: New Evidence From India," Working Papers 96-8, Brown University, Department of Economics.
- Nishimizu, Mieko & Robinson, Sherman, 1984. "Trade policies and productivity change in semi-industrialized countries," Journal of Development Economics, Elsevier, vol. 16(1-2), pages 177-206.
- G. Steven Olley & Ariel Pakes, 1992. "The Dynamics of Productivity in the Telecommunications Equipment Industry," NBER Working Papers 3977, National Bureau of Economic Research, Inc.
- Mamata Parhi, 2008. "Impact of Changing Facets of Inter-firm Interactions on Manufacturing Excellence: A Social Network Perspective of Indian Automotive Industry," Working Papers of BETA 2008-08, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamprasad M. Pujar).
If references are entirely missing, you can add them using this form.