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Industrial Concentration in a Liberalising Economy: a Study of Indian Manufacturing

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Author Info
Suma Athreye ()
Sandeep Kapur

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Abstract

This paper studies industrial concentration in Indian manufacturing sectors over the period 1970 to 1999. Given that Indian industry was highly regulated till the mid-1980s, the market structure in most manufacturing sectors was largely shaped by government policy. Deregulation after 1985 allowed greater scope for competitive processes, so that concentration levels are now more likely to be determined by industry characteristics rather than government policy. We find that, on the whole, concentration levels were indeed more significantly related to industry characteristics after deregulation. However, even after controlling for these characteristics, there is considerable heterogeneity in the patterns of concentration in individual industries.

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Publisher Info
Paper provided by The Open University, Faculty of Social Sciences, Department of Economics in its series Open Discussion Papers in Economics with number 51.

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Length: 32 pages
Date of creation: Oct 2004
Date of revision:
Handle: RePEc:opn:wpaper:51

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Keywords: industrial concentration liberalisation India

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References listed on IDEAS
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  1. Pesaran, M. Hashem & Smith, Ron, 1995. "Estimating long-run relationships from dynamic heterogeneous panels," Journal of Econometrics, Elsevier, vol. 68(1), pages 79-113, July. [Downloadable!] (restricted)
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  2. Suma Athreye & Sandeep Kapur, 2001. "Private Foreign Investment in India: Pain or Panacea?," The World Economy, Blackwell Publishing, vol. 24(3), pages 399-424, 03. [Downloadable!] (restricted)
  3. Geroski, Paul A & Mazzucato, Mariana, 2001. "Advertising and the Evolution of Market Structure in the US Car Industry," CEPR Discussion Papers 2860, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  4. Ira N. Gang, 1996. "Small Firms in India: A Discussion of Some Issues," Departmental Working Papers 199404, Rutgers University, Department of Economics.
  5. Nigel Driffield, 2001. "Inward investment, industry concentration and the speed of adjustment," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(2), pages 193-214, June. [Downloadable!] (restricted)
  6. S. W. Davies & Paul A. Geroski, 2000. "Changes In Concentration, Turbulence, And The Dynamics Of Market Shares," The Review of Economics and Statistics, MIT Press, vol. 79(3), pages 383-391, August. [Downloadable!] (restricted)
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