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Empirical Estimates of Inverted Duty Structure and Effective Rate of Protection—The Case of India

K. Pathania ()
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K. Pathania: Delhi School of Economics

Chapter Chapter 1 in Trade, Investment and Economic Growth, 2021, pp 3-22 from Springer

Abstract: Abstract In this study, we calculate average output and input tariffs and effective rates of protection for 14 important industries of the Indian economy for the period 2000–2014. Input–output coefficients and ERPs have been computed using the World Input–Output Database using both Corden’s and Balassa’s methodology. In addition, we also investigate whether any of the selected merchandise industries in the country is characterised by the presence of inverted duty structure. Our estimates suggest that the higher the extent of positive protection, the lesser is the chance of duty inversion. In particular, as per the value-added statistics, IDS exists in electronics and optical products, paper and paper products, computer, pharmaceuticals, machinery and equipment and other transport equipment for the majority of the years under consideration. However, negative effective protection is found in only a few industries, for a few years.

Keywords: Nominal tariffs; Effective rate of protection; Imports; Inverted duty structure; India; F14 (search for similar items in EconPapers)
JEL-codes: F14 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-33-6973-3_1

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DOI: 10.1007/978-981-33-6973-3_1

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