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India’s Trade Reform: Progress, Impact and Future Strategy:

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  • Arvind Panagariya

    (Columbia University)

Abstract

I offer a comprehensive analysis of India's trade policy, particularly since 1991, and its impact on the economy. I provide evidence showing that trade liberalization has had a major impact on the quality and availability of goods and on services growth. The evidence on productivity growth in the industrial sector varies across studies, however. I also explain why India lags behind China and what India must do to catch up. The strategy for future liberalization, including a possible U.S.-India free trade area, is discussed.

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File URL: http://128.118.178.162/eps/it/papers/0403/0403004.pdf
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Bibliographic Info

Paper provided by EconWPA in its series International Trade with number 0403004.

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Length: 77 pages
Date of creation: 05 Mar 2004
Date of revision:
Handle: RePEc:wpa:wuwpit:0403004

Note: Type of Document - pdf; pages: 77
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Web page: http://128.118.178.162

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  1. Romer, Paul, 1994. "New goods, old theory, and the welfare costs of trade restrictions," Journal of Development Economics, Elsevier, vol. 43(1), pages 5-38, February.
  2. Charles R. Hulten & Sylaja Srinivasan, 1999. "Indian Manufacturing Industry: Elephant or Tiger? New Evidence on the Asian Miracle," NBER Working Papers 7441, National Bureau of Economic Research, Inc.
  3. Hulten, Charles R, 1975. "Technical Change and the Reproducibility of Capital," American Economic Review, American Economic Association, vol. 65(5), pages 956-65, December.
  4. Arvind Panagariya & Dani Rodrik, 1991. "Political-Economy Arguments for a Uniform Tariff," NBER Working Papers 3661, National Bureau of Economic Research, Inc.
  5. Barry P. Bosworth & Susan M. Collins, 2003. "The Empirics of Growth: An Update," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 34(2), pages 113-206.
  6. Timothy J. Kehoe & Kim J. Ruhl, 2009. "How important is the new goods margin in international trade?," Staff Report 324, Federal Reserve Bank of Minneapolis.
  7. Kim Jong-Il & Lau Lawrence J., 1994. "The Sources of Economic Growth of the East Asian Newly Industrialized Countries," Journal of the Japanese and International Economies, Elsevier, vol. 8(3), pages 235-271, September.
  8. Timothy J. Kehoe, 2003. "An evaluation of the performance of applied general equilibrium models of the impact of NAFTA," Staff Report 320, Federal Reserve Bank of Minneapolis.
  9. Poonam Gupta & James P. F. Gordon, 2004. "Understanding India’s Services Revolution," IMF Working Papers 04/171, International Monetary Fund.
  10. Mattoo, Aaditya & Fink, Carsten, 2002. "Regional agreements and trade services - policy issues," Policy Research Working Paper Series 2852, The World Bank.
  11. Arvind Panagariya, 2002. "Cost of Protection: Where Do We Stand?," American Economic Review, American Economic Association, vol. 92(2), pages 175-179, May.
  12. Jagdish N. Bhagwati & T. N. Srinivasan, 1975. "Foreign Trade Regimes and Economic Development: India," NBER Books, National Bureau of Economic Research, Inc, number bhag75-1, July.
  13. Alwyn Young, 1992. "A Tale of Two Cities: Factor Accumulation and Technical Change in Hong Kong and Singapore," NBER Chapters, in: NBER Macroeconomics Annual 1992, Volume 7, pages 13-64 National Bureau of Economic Research, Inc.
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Cited by:
  1. Monojit Chatterji & Sushil Mohan & Sayantan Ghosh Dastidar, 2013. "Relationship between trade openness and economic growth of India: A time series analysis," Dundee Discussion Papers in Economics 274, Economic Studies, University of Dundee.
  2. Verma, Rubina, 2012. "Can total factor productivity explain value added growth in services?," Journal of Development Economics, Elsevier, vol. 99(1), pages 163-177.

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