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Does Services Liberalization Affect Manufacturing Firms' Export Performance? Evidence from India

Maria Bas

Working Papers from CEPII research center

Abstract: This paper investigates the relationship between the reform of energy, telecommunications and transport services in India in the mid-1990s and manufacturing firms’ export performance. The empirical analysis relies on exogenous indicators of regulation of Indian services sectors and detailed firm-level data from India in the 1994-2004 period. I find that the reform of upstream services sector has increased the probability of exporting and export sales shares of firms producing in downstream manufacturing industries. The results suggest that the effect of services liberalization on manufacturing firms’ export performance is stronger for initially more productive firms. These empirical findings are robust to alternative econometric specifications that control for other reforms, industry, firm characteristics and that deal with potential reverse causality concerns.

Keywords: Services liberalization; manufacturing firms’ export performance; firm heterogeneity; firm level data (search for similar items in EconPapers)
JEL-codes: O10 O12 F1 L8 (search for similar items in EconPapers)
Date: 2013-06
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-int and nep-sbm
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