Technical regulations, intermediate inputs, and performance of firms: Evidence from India

Document Type

Article

Publication Title

Journal of International Economics

Abstract

We estimate the consequences of maintaining restrictive Technical Barriers to Trade (TBT) measures on markups for manufacturing firms in India. We combine firm-product level data from Prowess with the data on TBTs that have been raised as a concern by member countries against India in the TBT committee of WTO. We find that higher TBT incidence on intermediate inputs to the industry leads to a decrease in markups for importers relative to non-importers. Firms absorb the increase in marginal costs by reducing markups with no significant increase in prices.

Publication Date

1-1-2021

Publisher

Elsevier Inc

Volume

Vol.128

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