School of International & Public Affairs
NBER Working Papers and Publications
|February 2014||The Link Between Manufacturing Growth and Accelerated Services Growth in India|
with Rajeev H. Dehejia: w19923
The impact of trade liberalization on manufacturing growth has been widely studied in the literature. What has gone unappreciated is that accelerated manufacturing growth has also been accompanied by accelerated services growth. Using firm-level data from India, we find a positive spillover from manufacturing growth 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.
Published: Economic Development and Cultural Change, Volume 64, Numbers 2 (January 2016), pp. 221-264. citation courtesy of
|March 1991||Political-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.
Published: International Economic Review, August 1993 citation courtesy of