IDEAS home Printed from https://ideas.repec.org/a/wly/jintdv/v11y1999i5p701-715.html
   My bibliography  Save this article

Small-scale enterprise policy in developing countries: an analysis of India's reservation policy

Author

Listed:
  • Homi Katrak

    (Department of Economics, University of Surrey, Guildford, UK)

Abstract

This paper examines the effects of India's reservation policy to help the small-scale enterprises. Empirical tests showed three main results. Firstly, reservation has increased the number of production units, per item produced. Secondly, the units that produce mainly reserved items have higher levels of installed capacities, than those making mainly unreserved items, but the former do not have higher levels of production, thereby resulting in significantly lower levels of capacity utilisation. Thirdly, reservation has not helped reduce the problem of closures of small units. The empirical results suggest that reservation may have brought little help to production and employment in the small-scale units nor to the consumers of their products, while at the same time it may have restricted production and employment in the large units. Thus reservation may have caused a loss in overall economic welfare. Copyright © 1999 John Wiley & Sons, Ltd.

Suggested Citation

  • Homi Katrak, 1999. "Small-scale enterprise policy in developing countries: an analysis of India's reservation policy," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(5), pages 701-715.
    • Handle: RePEc:wly:jintdv:v:11:y:1999:i:5:p:701-715
    DOI: 10.1002/(SICI)1099-1328(199907/08)11:5<701::AID-JID560>3.0.CO;2-M
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Kashyap, S. P., 1988. "Growth of small-size enterprises in India: Its nature and content," World Development, Elsevier, vol. 16(6), pages 667-681, June.
    2. Sandee, H., 1994. "Promoting small scale and cottage industries in Indonesia : an impact analysis for central Java," Serie Research Memoranda 0010, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    3. Ramaswamy, K.V., 1994. "Small-Scale Manufacturing Industries in India: Some Aspects of size, Growth and Structure," Papers 105, Indira Gandhi Institute of Development Research-.
    4. Gang, Ira N., 1992. "Small firm "presence" in Indian manufacturing," World Development, Elsevier, vol. 20(9), pages 1377-1389, September.
    5. Guhathakurta, Subhrajit, 1993. "Economic independence through protection? Emerging contradictions in India's small-scale sector," World Development, Elsevier, vol. 21(12), pages 2039-2054, December.
    6. Michael McPherson, 1995. "The hazards of small firms in Southern Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 32(1), pages 31-54.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Burki, Abid A. & Terrell, Dek, 1998. "Measuring production efficiency of small firms in Pakistan," World Development, Elsevier, vol. 26(1), pages 155-169, January.
    2. Wolday Amha, 2016. "Growth of Youth-owned MSEs in Ethiopia: Characteristics, Determinants and Challenges," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 24(2), August.
    3. Riadh Ben Jelili, "undated". "Firm Heterogeneity and Productivity: The Contribution of Microdata," API-Working Paper Series 1013, Arab Planning Institute - Kuwait, Information Center.
    4. Keshari, Pradeep Kumar, 1995. "Determinants of the propensity to export: the case of small firms in the diesel engine and chemicals industries in Gujarat," MPRA Paper 44849, University Library of Munich, Germany.
    5. A. Moschonas & V. Droucopoulos, 1993. "Small and Medium-Scale Industry In Greece: Oasis of Dynamism or Symptom of Malaise?," Review of Radical Political Economics, Union for Radical Political Economics, vol. 25(2), pages 108-131, June.
    6. Gebregziabher, Kidanemariam & Hadush, Muuz & Gebremichae, Meaza, 2022. "How Long Micro and Small Enterprises Do Wait to Graduate? Empirical Evidence from Duration Analysis in Ethiopia," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 47(2), pages 39-65, June.
    7. 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.
    8. Mead, Donald C. & Liedholm, Carl, 1998. "The dynamics of micro and small enterprises in developing countries," World Development, Elsevier, vol. 26(1), pages 61-74, January.
    9. Van Diermen, Peter, 1997. "Labor remuneration in Jakarta's small enterprises: Exploitative or equitable?," World Development, Elsevier, vol. 25(12), pages 2129-2141, December.
    10. Janvier D. Nkurunziza, 2005. "Credit Can Precipitate Firm Failure: Evidence from Kenyan Manufacturing in the 1990s," Economics Series Working Papers WPS/2005-04, University of Oxford, Department of Economics.
    11. Joseph Andrew Kuzilwa, 2005. "The Role of Credit for Small Business Success," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 14(2), pages 131-161, September.
    12. Nagler,Paula & Naude, Wim & Nagler,Paula & Naude, Wim, 2014. "Non-farm enterprises in rural Africa : new empirical evidence," Policy Research Working Paper Series 7066, The World Bank.
    13. Inessa Love & Boris Nikolaev & Chandra Dhakal, 2024. "The well-being of women entrepreneurs: the role of gender inequality and gender roles," Small Business Economics, Springer, vol. 62(1), pages 325-352, January.
    14. repec:ilo:ilowps:484346 is not listed on IDEAS
    15. Nagler, Paula & Naudé, Wim, 2017. "Non-farm entrepreneurship in rural sub-Saharan Africa: New empirical evidence," Food Policy, Elsevier, vol. 67(C), pages 175-191.
    16. Rajesh SN Raj & Kunal Sen, 2016. "Moving out of the bottom of the economy? Constraints to firm transition in the Indian informal manufacturing sector," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-20, December.
    17. Takao FUKUCHI, 1998. "A Simulation Analysis Of The Urban Informal Sector," The Developing Economies, Institute of Developing Economies, vol. 36(3), pages 225-256, September.
    18. Marcelo Resende & Vicente Cardoso & Luis Otávio Façanha, 2016. "Determinants of survival of newly created SMEs in the Brazilian manufacturing industry: an econometric study," Empirical Economics, Springer, vol. 50(4), pages 1255-1274, June.
    19. K. V. Ramaswamy, 2021. "Do Size-dependent Tax Incentives Discourage Plant Size Expansion? Evidence from Panel Data in Indian Manufacturing," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 15(4), pages 395-417, November.
    20. David McKenzie & Anna Luisa Paffhausen, 2019. "Small Firm Death in Developing Countries," The Review of Economics and Statistics, MIT Press, vol. 101(4), pages 645-657, October.
    21. Sandhya S. Iyer, 2017. "India’s fragile industrial landscape and worker’s remuneration: some unanswered paradoxes," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 60(3), pages 371-387, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:jintdv:v:11:y:1999:i:5:p:701-715. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/journal/5102/home .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.