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Does Services Liberalization Affect Manufacturing Firms' Export Performance? Evidence from India

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  • Maria Bas

Abstract

This paper investigates the relationship between the reform of energy, telecommunications and transport services in India in the mid-1990s and manufacturing firms’ export performance. The empirical analysis relies on exogenous indicators of regulation of Indian services sectors and detailed firm-level data from India in the 1994-2004 period. I find that the reform of upstream services sector has increased the probability of exporting and export sales shares of firms producing in downstream manufacturing industries. The results suggest that the effect of services liberalization on manufacturing firms’ export performance is stronger for initially more productive firms. These empirical findings are robust to alternative econometric specifications that control for other reforms, industry, firm characteristics and that deal with potential reverse causality concerns.

Suggested Citation

  • Maria Bas, 2013. "Does Services Liberalization Affect Manufacturing Firms' Export Performance? Evidence from India," Working Papers 2013-17, CEPII research center.
  • Handle: RePEc:cii:cepidt:2013-17
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    References listed on IDEAS

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    Cited by:

    1. World Bank Group, 2016. "Services and Manufacturing Linkages," World Bank Other Operational Studies 24040, The World Bank.

    More about this item

    Keywords

    Services liberalization; manufacturing firms’ export performance; firm heterogeneity; firm level data;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • F1 - International Economics - - Trade
    • L8 - Industrial Organization - - Industry Studies: Services

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