COMPETITIVE PRESSURES FROM TRADE EXPOSURE: EVIDENCE FROM INDIAN MANUFACTURING

@inproceedings{Sen1999COMPETITIVEPF,
  title={COMPETITIVE PRESSURES FROM TRADE EXPOSURE: EVIDENCE FROM INDIAN MANUFACTURING},
  author={Krishnaprasanna Sen and Chakriya Bowman},
  year={1999}
}
Does exposure to international trade have a pro-competitive effect on domestic pricing? This paper attends to this question in two stages: first, by developing a simple methodology to test the above proposition by linking domestic pricing behaviour to external competition via a simple mark-up technology; next, disaggregated Indian manufacturing data is used to show that the sector is imperfectly competitive and that both price and quantity competition from abroad over the last twenty years has… CONTINUE READING