Trade Liberalization and Firm Productivity : The Case of India

  title={Trade Liberalization and Firm Productivity : The Case of India},
  author={Petia Topalova},
Using a panel of firm-level data, this paper examines the effects of India’s trade reforms in the early 1990s on firm productivity in the manufacturing sector, focusing on the interaction between this policy shock and industry, firm and environment characteristics. The rapid and comprehensive tariff reductions–part of an IMF-supported adjustment program with India in 1991–allow us to establish a causal link between inter-industry and inter-temporal variations in output tariffs, input tariffs… CONTINUE READING
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