CEPII, Recherche et Expertise sur l'economie mondiale
Does Services Liberalization Affect Manufacturing Firms' Export Performance? Evidence from India

Maria Bas

 Highlights :

 Abstract :
This paper investigates the relationship between the reform of energy, telecommunications and transport services in India in the mid-1990s and manufacturing firms’ export performance. The empirical analysis relies on exogenous indicators of regulation of Indian services sectors and detailed firm-level data from India in the 1994-2004 period. I find that the reform of upstream services sector has increased the probability of exporting and export sales shares of firms producing in downstream manufacturing industries. The results suggest that the effect of services liberalization on manufacturing firms’ export performance is stronger for initially more productive firms. These empirical findings are robust to alternative econometric specifications that control for other reforms, industry, firm characteristics and that deal with potential reverse causality concerns.

 Keywords : Services liberalization | manufacturing firms’ export performance | firm heterogeneity | firm level data

 JEL : O10, O12, F1, L8
CEPII Working Paper
N°2013-17, June 2013

Non Technical Summary

Full text

BibTeX (with abstract),
plain text (with abstract),
RIS (with abstract)