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Tariff liberalization and trade specialization: Lessons from India

Author Info

  • Alessandrini, Michele
  • Fattouh, Bassam
  • Ferrarini, Benno
  • Scaramozzino, Pasquale

Abstract

This paper analyzes the effects of policy reform on the structure of India’s trade in manufactures, from 1990 to 2006. It computes comparative advantage indicators on the basis of disaggregated trade flow data and assesses the effects of trade liberalization on the evolution of India’s pattern of trade specialization. Industries where import tariffs have been reduced the most have experienced the highest increase in specialization. Moreover, trade liberalization has helped India improve its comparative advantage in industries with medium- to high-technology content, as well as in some of the industries enjoying the most robust growth in global demand. Liberalization policies have been instrumental in enhancing the international competitiveness of industries.

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Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 39 (2011)
Issue (Month): 4 ()
Pages: 499-513

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Handle: RePEc:eee:jcecon:v:39:y:2011:i:4:p:499-513
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622864

Keywords: Asia; India; Trade; Liberalization; Specialization;

Find related papers by JEL classification:

  • F14 - International Economics - - Trade - - - Empirical Studies of Trade
  • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
  • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
  • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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Cited by:

  1. Bhatt, Antra & Scaramozzino, Pasquale, 2013. "Federal Transfers and Fiscal Discipline in India: An Empirical Evaluation," ADB Economics Working Paper Series 343, Asian Development Bank.
  2. Ferrarini, Benno & Scaramozzino, Pasquale, 2013. "Complexity, Specialization, and Growth," ADB Economics Working Paper Series 344, Asian Development Bank.
  3. Kathuria, Vinish & Rajesh Raj, S.N. & Sen, Kunal, 2013. "The effects of economic reforms on manufacturing dualism: Evidence from India," Journal of Comparative Economics, Elsevier, vol. 41(4), pages 1240-1262.

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