ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Is Import Liberalisation Hurting Domestic Industry and Employment?

Theory says that freer trade encourages economic activity and hence raises production and employment. Is this true in the Indian case? This article examines statistical evidence to answer this question. It finds that since liberalisation, trade has shrunk India's manufacturing base both in terms of value addition and employment. The intermediate and capital goods industries have suffered more. Manufacturing is also shifting from high-skilled and capital intensive production to low-skilled and labour intensive production. Existing wage disparity between skilled and unskilled workers has worsened.

Is Trade Deindustrialising India

Is Trade Deindustrialising India? R G Nambiar Gopal Tadas This article represents a first step towards answering the question whether trade is aeindustrialising India. It seeks to provide some quantitative estimates of the effects of trade on manufacturing output and employment. The experience of India from the mid-70s to the early 90s is used as a benchmark from which to examine the structural shifts in manufacturing industry due to trade vis-a-vis other sources of change.

East European Developments-Impact on Trade of Developing Countries

East European Developments Impact on Trade of Developing Countries R G Nambiar Rajesh Mehta G A Tadas This article makes an attempt to evaluate the potential impact of East's entry into the 'global economic zoo' on developing countries particularly from the standpoint of latter's trade opportunities in the nineties. The East's entry into the world's free markets' appears to have ruinous ramifications for developing countries' trade. There are two circumstances which reinforce this conclusion. The first is the findings of the 1980s which show a firm trend of trade diversion that has already begun to flush out the developing countries not only from the markets of North, but also from its own markets. The second circumstance is the apparent tendency for the structure of intra-East Europe trade to be very similar to the export structures of the developing countries.

Tariffs and Foreign Prices-Some Further Evidence

Some Further Evidence Rajesh Mehta R G Nambiar The inverse relationship between tariffs and relative foreign prices that was established in an earlier empirical exercise (EPW, June 13, 1987) is confirmed by more refined statistical investigations.

Effect of Tariffs on Foreign Prices-The Case of India

The Case of India R G Nambiar Rajesh Mehta There appears to be an asymmetrical link between tariff rates and prices to this country relative to prices to the rest of the world. The latter has a tendency to be low when tariff is high and conversely tend to be high when tariff is low. One important implication of this is that substantial tariff reductions in the presence of imperfections in the world market are suspect; the foreign producer would rob some, if not all, of the benefits of such tariff reductions. Instead, a rise in tariff might be rightly placed; it would exert pressure upon the foreign producer to absorb the tariff hike.

Protection to Domestic Industry-Fact and Theory

Protection to Domestic Industry Fact and Theory R G Nambiar A view much argued in the sixties and seventies was that the price mechanism in the developing countries was not conducive to an economic use of resources.

Import Substitution, Domestic Resource Cost, and Key Sectors in the Indian Economy

Import Substitution, Domestic Resource Cost, and Key Sectors in the Indian Economy R G Nambiar With the industrialisation policy of the 1950s and 1960s, India turned explicitly to a growth strategy, based upon the promotion of import substitution (IS) in consumer goods, basic intermediates, and capital goods industries. As a consequence, domestic manufactured goods as a proportion of the total supply of manufactured goods increased from 0.781 in 1955-56 to 0.857 in 1973-74. Similarly, the share of imports in consumer goods declined steadily from 12.9 per cent in 1955-56 to 3.6 per cent in 1973-74, with imports generally shifting towards investment and intermediate goods.
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