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Adjustment Of Pricing: Evidence From Indian Manufacturing

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  • Mita Bhattacharya
  • Michael Olive

Abstract

In India, manufacturing plays a significant role in economic development, growth and as a source of employment. This paper analyses the pricing behaviour in Indian manufacturing sector considering both domestic and external variables. Price adjustment models are developed based on Industrial Organization literature and are examined with 28 manufacturing industries at the 3-digit level over the period from 1963 to 2001. Domestic structural factors are found to be important in determining speed of price adjustment.

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File URL: http://www.buseco.monash.edu.au/eco/research/papers/2007/0407olivebhattacharya.pdf
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Bibliographic Info

Paper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number 04-07.

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Length: 20 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:mos:moswps:2007-04

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Keywords: Speed of price adjustment; Competitiveness; Indian manufacturing;

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  1. Pedroni, Peter, 1999. " Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 653-70, Special I.
  2. Nickell, Stephen, 1985. "Error Correction, Partial Adjustment and All That: An Expository Note," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 47(2), pages 119-29, May.
  3. Martin, Christopher, 1993. "Price adjustment and market structure," Economics Letters, Elsevier, vol. 41(2), pages 139-143.
  4. Kenneth Kasa, 1998. "Identifying the source of dynamics in disaggregated import data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(3), pages 305-320.
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