The Structure and Competitiveness of India's Exports

S. N. Kapur
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S. N. Kapur: P. G. D. A. V. College, University of Delhi

Indian Economic Review, 1991, vol. 26, issue 2, 221-237

Abstract: The purpose of this paper is to examine whether and to what extent the declining shares of India in the world and the developing countries exports reflect the loss of its international competitiveness. This is achieved by applying the constant Market Share model which decomposes export growth into two broad components- the structural effect and the competitive effect. Our results establish the significance of structural factors in explaining India's exports to the Developed Market Economies. The analysis at market level reveals that India's export were competitive in some markets, for example in Italy, Belgium, Netherlands and Germany. This fact is not generally well recognized. The competitive effect at disaggregated level over commodities underline the importance of export policy of India in improving competitiveness of its exports.

Date: 1991
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