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Multiproduct Firms and Product Turnover in the Developing World: Evidence from India

Pinelopi Goldberg (), Amit Khandelwal, Nina Pavcnik and Petia Topalova

The Review of Economics and Statistics, 2010, vol. 92, issue 4, 1042-1049

Abstract: This paper provides evidence on the patterns of multiproduct firm production in a large developing country, India, during a period that spans market reforms. In the cross-section, multiproduct firms in India look remarkably similar to their U.S. counterparts. The time-series patterns, however, exhibit important differences. In contrast to evidence from the United States, product churning, particularly product rationalization, is far less common in India. We find no link between product rationalization and output tariff declines following India's 1991 trade liberalization. The lack of "creative destruction" is consistent with the role of industrial regulation in preventing an efficient allocation of resources. (c) 2010 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2010
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Working Paper: Multi-product Firms and Product Turnover in the Developing World: Evidence from India (2009) Downloads
Working Paper: Multi-product Firms and Product Turnover in the Developing World: Evidence from India (2008) Downloads
Working Paper: Multi-product Firms and Product Turnover in the Developing World: Evidence from India (2008) Downloads
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The Review of Economics and Statistics is currently edited by Amitabh Chandra, Olivier Coibion, Bryan S. Graham, Shachar Kariv, Amit K. Khandelwal, Asim Ijaz Khwaja, Brigitte C. Madrian and Rohini Pande

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