Technical regulations, intermediate inputs, and performance of firms: Evidence from India
Rahul Singh and
Journal of International Economics, 2021, vol. 128, issue C
We estimate the consequences of maintaining restrictive Technical Barriers to Trade (TBT) measures on markups for manufacturing firms in India. We combine firm-product level data from Prowess with the data on TBTs that have been raised as a concern by member countries against India in the TBT committee of WTO. We find that higher TBT incidence on intermediate inputs to the industry leads to a decrease in markups for importers relative to non-importers. Firms absorb the increase in marginal costs by reducing markups with no significant increase in prices.
Keywords: NTMs; TBTs; Intermediate inputs; Markup; Marginal cost (search for similar items in EconPapers)
JEL-codes: F13 F14 O19 O24 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:128:y:2021:i:c:s0022199620301276
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