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Trade Liberalization Policy in India


  • Ira N. Gang

    () (Rutgers University)


There are many explanations for apparently sudden changes in trade liberalization policy in India. This paper examines some of these explanations against the history and characteristics of trade liberalization policy in India. It proposes an additional interpretation based on the self-interested behavior of policy-makers. The interpretation is consistent with other explanations, and adds some insight into the sudden starts and stops of liberalization attempts. It also predicts that though the present liberalization may be permanent, it will not be thorough.

Suggested Citation

  • Ira N. Gang, 1996. "Trade Liberalization Policy in India," Departmental Working Papers 199413, Rutgers University, Department of Economics.
  • Handle: RePEc:rut:rutres:199413

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    References listed on IDEAS

    1. H. Chernick & A. Reschovsky, "undated". "Is the gasoline tax regressive?," Institute for Research on Poverty Discussion Papers 980-92, University of Wisconsin Institute for Research on Poverty.
    2. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters,in: A Theory of the Consumption Function, pages 1-6 National Bureau of Economic Research, Inc.
    3. Dunbar, Amy & Nordhauser, Susan, 1991. "Is the Child Care Credit Progressive?," National Tax Journal, National Tax Association, vol. 44(4), pages 519-28, December.
    4. Dunbar, Amy & Nordhauser, Susan, 1991. "Is the Child Care Credit Progressive?," National Tax Journal, National Tax Association, vol. 44(4), pages 519-528, December.
    5. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, January.
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    Cited by:

    1. Mohammed I Ansari & Ira N Gang, 1999. "Liberalization Policy: ‘Fits & Starts’ or Gradual Change in India," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 41(4), pages 23-46, December.

    More about this item


    India; protection; reform; tariffs; trade liberalization;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations


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