Liberalized trade policy and inequality: Evidence from Post-Multi-Fibre Arrangement India and some theoretical issues

Mausumi Kar and Saibal Kar (saibal@cssscal.org)

No wp-2015-007, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The phased elimination of the Multi-Fibre Arrangement has been one of the most compelling trade policy reforms of the early twenty-first century, and has brought in significant changes in the industrial structures of the countries of the global south. The textile and clothing industry is the largest foreign exchange earner and the largest employment provider in India. We show that since the withdrawal of the quota, the industry has witnessed unprecedented concentration of firm-level activities, size-wise as well as state-wise, thereby creating some sort of inequality.

Keywords: Econometric models (Economic development); Equality and inequality; Industrial policy; Manufacturing industries; Trade regulation; Wages (search for similar items in EconPapers)
Date: 2015
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