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Economic reforms and their impact on the manufacturing sector: lessons from the Indian experience


  • Eckhard Siggel

    () (Department of Economics, Concordia University, Montreal, Canada,)


This paper analyses the impact of the Indian reforms of the early 1990s on exports and employment by using indicators of competitiveness and comparative advantage. These indicators are unit cost ratios, which differ by using domestic prices, international or export prices and shadow prices. They are broken down into cost components which show the sources of competitiveness or the lack of it, such as productivity or price and cost distortions. The changes in competitiveness following the reforms are then used to examine whether the export and employment performance of the manufacturing industries can be attributed to the reform-induced cost changes.

Suggested Citation

  • Eckhard Siggel, 2007. "Economic reforms and their impact on the manufacturing sector: lessons from the Indian experience," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 14(1), pages 73-104, June.
  • Handle: RePEc:unt:jnapdj:v:14:y:2007:i:1:p:73-104

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    Cited by:

    1. Eckhard Siggel & Pradeep Agrawal, 2009. "The Impact Of Economic Reforms On Indian Manufacturers : Evidence From A Small Sample Survey," Development Economics Working Papers 22930, East Asian Bureau of Economic Research.

    More about this item


    economic policy reform; manufacturing industries; India; international competitiveness;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L6 - Industrial Organization - - Industry Studies: Manufacturing


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