IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Economic reforms and entry barriers in Indian manufacturing

  • M. Suresh Babu

    (Centre for Development Studies)

Registered author(s):

    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.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.cds.edu/wp-content/uploads/2012/10/wp331.pdf
    Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (Shamprasad M. Pujar)


    Download Restriction: no

    Paper provided by Centre for Development Studies, Trivendrum, India in its series Centre for Development Studies, Trivendrum Working Papers with number 331.

    as
    in new window

    Length: 64 pages
    Date of creation: Apr 2002
    Date of revision:
    Handle: RePEc:ind:cdswpp:331
    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
    Email:


    More information through EDIRC

    References listed on IDEAS
    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.:

    as in new window
    1. Demsetz, Harold, 1982. "Barriers to Entry," American Economic Review, American Economic Association, vol. 72(1), pages 47-57, March.
    2. 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 Elsevier.
    3. 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.
    4. Wallis, Kenneth F, 1980. "Econometric Implications of the Rational Expectations Hypothesis," Econometrica, Econometric Society, vol. 48(1), pages 49-73, January.
    5. 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.
    6. Dixit, Avinash, 1979. "The Role of Investment in Entry-Deterrence," The Warwick Economics Research Paper Series (TWERPS) 140, University of Warwick, Department of Economics.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. Wickens, Michael R, 1982. "The Efficient Estimation of Econometric Models with Rational Expectations," Review of Economic Studies, Wiley Blackwell, vol. 49(1), pages 55-67, January.
    12. 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.
    13. Adrian Pagan, 1985. "Two Stage and Related Estimators and Their Applications," Cowles Foundation Discussion Papers 741, Cowles Foundation for Research in Economics, Yale University.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    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 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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.