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Economic liberalization and new product enterprises in the newly industrializing countries: an analysis of the Indian experience

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  • Homi Katrak

    (University of Surrey, Guildford, UK)

Abstract

This paper examines whether India's recent economic liberalization policies have led to a shift away from the relatively R&D intensive new product enterprises (NPEs) and towards old product enterprises (OPEs). The former type of enterprises had begun production under the earlier protectionist regime and there has been concern whether they will do well under the more competitive liberalized environment. Empirical tests, covering two 6-year periods, 1985-90 and 1991-96, found only limited evidence that the growth in the number of the NPEs had been relatively lower in the post liberalisation period, compared to that of the OPEs. However the NPEs' contribution to the growth of industry output had not decreased in that period. Overall there has been no adverse effect on the NPEs. These results may well be showing that any unfavourable influence of trade liberalisation on the NPEs has been offset by the liberalisation of the imports of technology and also the de-licensing policy. Copyright © 2002 John Wiley & Sons, Ltd.

Suggested Citation

  • Homi Katrak, 2002. "Economic liberalization and new product enterprises in the newly industrializing countries: an analysis of the Indian experience," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(2), pages 195-206.
    • Handle: RePEc:wly:jintdv:v:14:y:2002:i:2:p:195-206
    DOI: 10.1002/jid.848
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    References listed on IDEAS

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    2. Panda, Sidheswar & Sharma, Ruchi, 2021. "Do changes in patent policy influence firms’ technology strategy? Evidence from manufacturing in India," Journal of Policy Modeling, Elsevier, vol. 43(2), pages 362-375.

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