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The political economy of retail liberalization: The case of India

Author

Listed:
  • Arpita Mukherjee

    (Indian Council for Research on International Economic Relations (ICRIER), India)

  • Tanu M. Goyal

    (Indian Council for Research on International Economic Relations (ICRIER), India)

Abstract

This paper examines the political complexities of retail liberalization in a developing country such as India in the overall context of liberalization of trade in services. Drawing on the experiences of other developing countries and India's experiences in the past decade of allowing FDI in retail, the paper found that retail modernization is a part of economic development and it will continue to happen. The governments of developing countries have to take into account multiple perceptions related to retail liberalization and design a policy that is non-discriminatory and transparent. Appropriate policies should be in place to support the traditional retailers to face competition. Developing countries should be willing to bind their unilateral liberalization in trade agreements and this will enhance their bargaining power.

Suggested Citation

  • Arpita Mukherjee & Tanu M. Goyal, 2014. "The political economy of retail liberalization: The case of India," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-24.
    • Handle: RePEc:wsi:jicepx:v:05:y:2014:i:01:n:s1793993314400055
    DOI: 10.1142/S1793993314400055
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    References listed on IDEAS

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    1. Sinha, Pankaj & Singhal, Anushree, 2013. "FDI in Retail in India: An Empirical Analysis," MPRA Paper 46833, University Library of Munich, Germany.
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      More about this item

      Keywords

      Retail; FDI; liberalization; India; trade agreements; F13; F15; F5; L81; L88;
      All these keywords.

      JEL classification:

      • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
      • F15 - International Economics - - Trade - - - Economic Integration
      • F5 - International Economics - - International Relations, National Security, and International Political Economy
      • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
      • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy

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