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Import Competition and Vertical Integration: Evidence from India

Dev Vencappa and Joel Stiebale ()

Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

Abstract: This paper uses a rich firm-product panel data set of Indian manufacturing firms to analyze the relationship between import competition and vertical integration. Exploiting exogenous variations from changes in India's trade policy, we find that import competition induced by falling output tariffs increases vertical integration by domestic firms, with the effects concentrated in rather homogenous product categories, among firms that mainly operate on the domestic market and in larger firms.

JEL-codes: F61 F23 G34 L25 D22 D24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-com, nep-eff and nep-int
Date: 2017
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