Economic reforms and entry barriers in Indian manufacturing
Institutional regulations by way of licensing and capacity restrictions have often been considered as barriers to competition in Indian industry. As most of these regulations have given way for market signals an increase in the number of entrants and alterations in the conditions of entry, mainly the barriers to entry are expected. In this paper I attempt to analyse the extent of barriers to entry in Indian manufacturing by empirically quantifying the height of these barriers. Econometric estimation of the height of the barriers for 1991 and 1996 shows that the height of barriers increased in 1996 at the aggregate level. An examination at the disaggregate level reveals that in almost all the industries examined from a sample of firms drawn from the CMIE the height of the barriers have increased in 1996 compared to 1991. The dilution and dismantling of commands and controls intended to ease entry have thus paved the way for the erection and strengthening of market barriers which have grown over time.
|Date of creation:||Apr 2002|
|Date of revision:|
|Contact details of provider:|| Postal: Peasanth Nagar, Trivandrum 695 011, Kerala|
Phone: +91 471 2448 881
Fax: +91 471 2447 137
Web page: http://www.cds.edu
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pagan, Adrian, 1984. "Econometric Issues in the Analysis of Regressions with Generated Regressors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(1), pages 221-47, February.
- Gilbert, Richard J., 1989.
"Mobility barriers and the value of incumbency,"
Handbook of Industrial Organization,
in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 8, pages 475-535
- Gilbert, Richard, 1988. "Mobility Barriers and the Value of Incumbency," Department of Economics, Working Paper Series qt52q9j63w, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Richard J. Gilbert., 1988. "Mobility Barriers and the Value of Incumbency," Economics Working Papers 8895, University of California at Berkeley.
- C.C. von Weizsaker, 1980. "A Welfare Analysis of Barriers to Entry," Bell Journal of Economics, The RAND Corporation, vol. 11(2), pages 399-420, Autumn.
- M. R. Wickens, 1982. "The Efficient Estimation of Econometric Models with Rational Expectations," Review of Economic Studies, Oxford University Press, vol. 49(1), pages 55-67.
- Dennis C. Mueller & John E. Tilton, 1969. "Research and Development Costs as a Barrier to Entry," Canadian Journal of Economics, Canadian Economics Association, vol. 2(4), pages 570-579, November.
- Dixit, Avinash, 1979.
"The Role of Investment in Entry-Deterrence,"
The Warwick Economics Research Paper Series (TWERPS)
140, University of Warwick, Department of Economics.
- Orr, Dale, 1974. "An Index of Entry Barriers and Its Application to the Market Structure Performance Relationship," Journal of Industrial Economics, Wiley Blackwell, vol. 23(1), pages 39-49, September.
- Harold Demsetz, 1981.
"Barriers to Entry,"
UCLA Economics Working Papers
192, UCLA Department of Economics.
- Gorecki, Paul K, 1976. "The Determinants of Entry by Domestic and Foreign Enterprises in Canadian Manufacturing Industries: Some Comments and Empirical Results," The Review of Economics and Statistics, MIT Press, vol. 58(4), pages 485-88, November.
- Adrian Pagan, 1986.
"Two Stage and Related Estimators and Their Applications,"
Review of Economic Studies,
Oxford University Press, vol. 53(4), pages 517-538.
- Adrian Pagan, 1985. "Two Stage and Related Estimators and Their Applications," Cowles Foundation Discussion Papers 741, Cowles Foundation for Research in Economics, Yale University.
- Paul E. Jensen & Kala Krishna, 1996. "Entry Policy in an Open Economy," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 31(1), pages 41-56, January.
- Wallis, Kenneth F, 1980. "Econometric Implications of the Rational Expectations Hypothesis," Econometrica, Econometric Society, vol. 48(1), pages 49-73, January.
- Masson, Robert T & Shaanan, Joseph, 1986. "Excess Capacity and Limit Pricing: An Empirical Test," Economica, London School of Economics and Political Science, vol. 53(211), pages 365-78, August.
When requesting a correction, please mention this item's handle: RePEc:ind:cdswpp:331. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamprasad M. Pujar)
If references are entirely missing, you can add them using this form.