The impact of regulatory controls on industry structure: A study of the car and scooter industry in India

Praveen Kujal

UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía

Abstract: This paper studies the historical development of the regulatory process in India and the subsequent effect of regulatory controls on market structure, market performance, and product choice. The major proponents of the infant-industry arguments that subsequently led to tight internal and external (regulatory) baniers were the industrialists. It is seen that under the effect of regulatory controls there was no product innovation in the car industry which was under stricter controls than the scooter industry. There exist characteristics common to both industries. There was a substantial waiting period in both industries between the placement of the order, and the delivery of the good. After the relaxation of the market controls both industries witnessed entry and exit. There was an improvement in product mix and product qauality after the relaxation of the controls.

Date: 1996-03
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Persistent link: https://EconPapers.repec.org/RePEc:cte:werepe:3966

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