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Adjustment Of Pricing: Evidence From Indian Manufacturing

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  • Mita Bhattacharya
  • Michael Olive

Abstract

In India, manufacturing plays a significant role in economic development, growth and as a source of employment. This paper analyses the pricing behaviour in Indian manufacturing sector considering both domestic and external variables. Price adjustment models are developed based on Industrial Organization literature and are examined with 28 manufacturing industries at the 3-digit level over the period from 1963 to 2001. Domestic structural factors are found to be important in determining speed of price adjustment.

Suggested Citation

  • Mita Bhattacharya & Michael Olive, 2007. "Adjustment Of Pricing: Evidence From Indian Manufacturing," Monash Economics Working Papers 04-07, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2007-04
    as

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    File URL: http://www.buseco.monash.edu.au/eco/research/papers/2007/0407olivebhattacharya.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Speed of price adjustment; Competitiveness; Indian manufacturing;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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