NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by Arvind Panagariya

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Working Papers and Chapters

February 2014Trade Liberalization in Manufacturing and Accelerated Growth in Services in India
with Rajeev H. Dehejia: w19923
The impact of trade liberalization on accelerated manufacturing growth has been widely studied in the literature. What has gone unappreciated is that liberalization has also been accompanied by accelerated services growth. Using firm-level data from India, we find a positive spillover from manufacturing growth stimulated by trade and other liberalization to gross value added, wages, employment, and worker productivity in services, especially large urban firms and in service sectors whose output is used as a manufacturing input. We find that improved access to inputs via trade liberalization led to increased gross value added and worker productivity in capital-intensive service sectors.
March 1991Political-Economy Arguments for a Uniform Tariff
with Dani Rodrik: w3661
Uniform tariffs have become increasingly popular in recent years, yet their economic rationale is not strong. We identify and evaluate three sets of reasons as to why governments may prefer tariff uniformity as a means of alleviating political motives for excessive protection. First, a free-rider effect may be conducive to less lobbying under a uniform tariff regime than under a regime in which tariffs are allowed to differ. Second, an input-price effect may dampen the enthusiasm of final-goods producers for import protection. Third, a precommitment effect may increase the cost to a future government of protecting favored sectors. None of these arguments provides an unambiguous, airtight case for tariff uniformity. The decision on uniformity has to be made on a case-by-case basis.

Contact and additional information for this authorAll papers and publicationsWorking Papers onlyWorking Papers with publication info

 
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