Competitive Pressures From Trade Exposure: Evidence from Indian Manufacturing

Kunal Sen and S. Chand
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S. Chand: Australian Taxation Office, Canberra
Authors registered in the RePEc Author Service: Subhash Chand and Satish Chand

Indian Economic Review, 1999, vol. 34, issue 2, 113-126

Abstract: Does exposure to international trade have a pro-competitive effect on domestic pricing? This paper attends to this question in two stages: first, by developing a simple methodology to test the above proposition by linking domestic pricing behaviour to external competition via a simple mark-up technology; next, disaggregated Indian manufacturing data is used to show that the sector is imperfectly competitive and that both price and quantity competition from abroad over the last twenty years has had a dampening effect on domestic pricing behaviour.

JEL-codes: C23 F12 (search for similar items in EconPapers)
Date: 1999
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