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Is India ready for tariff reforms?: Lessons from difference-in-difference results

By: Ahmed, Aaheli and Chakraborty, Debashis.
Material type: materialTypeLabelBookPublisher: Economic & Political Weekly Description: 57(38), Sep, 17, 2022: p.21-25. In: Economic & Political WeeklySummary: Recent trade models with firm heterogeneity predict that trade liberalisation reduces the number of firms and the firms’ markups, while it increases the average size of fi rms. The present study attempts to test these predictions in the context of trade reforms in India with the Annual Survey of Industries data over two decades (1987–88 to 2017–18) by using a difference-in-difference approach and comments on the recent policy framework in that light. – Reproduced
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Articles Articles Indian Institute of Public Administration
57(38), Sep, 17, 2022: p.21-25 Available AR127521

Recent trade models with firm heterogeneity predict that trade liberalisation reduces the number of firms and the firms’ markups, while it increases the average size of fi rms. The present study attempts to test these predictions in the context of trade reforms in India with the Annual Survey of Industries data over two decades (1987–88 to 2017–18) by using a difference-in-difference approach and comments on the recent policy framework in that light. – Reproduced

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