Multiproduct Firms, Product Scope and Productivity: Evidence from India�s Product Reservation Policy

Joshua Wilde and Ishani Tewari ()
Additional contact information
Ishani Tewari: Yale School of Management

No 214, Working Papers from University of South Florida, Department of Economics

Abstract: We provide novel evidence showing product scope dynamics within a firm is an important dimension of productivity growth. This channel is identified by leveraging the gradual dismantling of an Indian regulation that �reserved� hundreds of products for manufacture in the small-scale sector. Following the removal of these product market restrictions, product churning and productivity rose. Multiproduct firms who were never in the reserved sector drive this increase, suggesting that the reservation policy constrained their ability to achieve the optimal product mix. Our findings underscore the importance of incorporating heterogeneity at the product-firm level in assessing the impact of size-contingent regulation.

Keywords: Productivity; Multiproduct Firms; India; Dereservation; Products (search for similar items in EconPapers)
JEL-codes: L50 O10 O25 O40 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2014-09
New Economics Papers: this item is included in nep-bec, nep-eff and nep-ind
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.usf.edu/arts-sciences/departments/econ ... ewariWilde_Final.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 File Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:usf:wpaper:0214

Access Statistics for this paper

More papers in Working Papers from University of South Florida, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Diogo Baerlocher ().