Competitive Pressure on the Indian Households: A General Equilibrium Approach

Thijs ten Raa and Amarendra Sahoo

Chapter 26 in Input–Output Economics: Theory and Applications:Featuring Asian Economies, 2009, pp 519-538 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractHow would competitive pressure impact upon the income distribution and the poverty of household groups? We analyze the gains in efficiency and productivity due to competitive pressure, and its distributional effects using a general equilibrium input–output framework. The efficient utilization of the available resources, technical progress and free trade constitute our sources of growth. Welfare would increase under competition, but the income distribution would become more skewed. Rural household groups would stand to lose relative to the urban ones. Urban poverty would be reduced significantly more than rural. In fact, the agricultural worker would even suffer from an increase in poverty. The study shows that competitive pressure has a positive effect on efficiency, productivity and poverty, but an adverse effect on the income distribution in the Indian economy.

Keywords: Input–Output Analysis; National Accounts; Productivity; Performance; Canadian Economy; Chinese Economy; Indian Economy; Asian Economics (search for similar items in EconPapers)
Date: 2009
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Journal Article: Competitive Pressure on the Indian Households: A General Equilibrium Approach (2007)
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