Tariff Liberalization and Trade Specialization: Lessons from India

Posted: 9 Apr 2013 Last revised: 10 Apr 2013

See all articles by Benno Ferrarini

Benno Ferrarini

Asian Development Bank

Michele Alessandrini

Independent

Pasquale Scaramozzino

University of Rome II - Faculty of Economics; University of London - School of Oriental and African Studies (SOAS); University of London - Centre for Financial and Management Studies (CeFIMS)

Bassam Fattouh

University of London - School of Oriental and African Studies (SOAS); University of London - Centre for Financial and Management Studies (CeFIMS)

Date Written: December 8, 2009

Abstract

This paper analyzes the effects of policy reform on the structure of India's trade in manufactures, from 1990 to 2006. It computes comparative advantage indicators on the basis of disaggregated trade flow data and assesses the effects of trade liberalization on the evolution of India's pattern of trade specialization. Industries where import tariffs have been reduced the most have experienced the highest increase in specialization. Moreover, trade liberalization has helped India improve its comparative advantage in industries with medium-to high-technology content, as well as in some of the industries enjoying the most robust growth in global demand. Liberalization policies have been instrumental in enhancing the international competitiveness of industries.

Keywords: Asia, India, Trade, Liberalization, Specialization

JEL Classification: F14, O14, O24, O53

Suggested Citation

Ferrarini, Benno and Alessandrini, Michele and Scaramozzino, Pasquale and Fattouh, Bassam, Tariff Liberalization and Trade Specialization: Lessons from India (December 8, 2009). Journal of Comparative Economics, Vol. 39, No. 4, 2011, Available at SSRN: https://ssrn.com/abstract=2247128

Benno Ferrarini (Contact Author)

Asian Development Bank ( email )

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Philippines

Michele Alessandrini

Independent ( email )

Pasquale Scaramozzino

University of Rome II - Faculty of Economics ( email )

Via Columbia n.2
Rome, 00100
Italy

University of London - School of Oriental and African Studies (SOAS) ( email )

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Russell Square: College Buildings 541
London, WC1H 0XG
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University of London - Centre for Financial and Management Studies (CeFIMS)

Thornhaugh Street
London, WC1H 0XG
United Kingdom

Bassam Fattouh

University of London - School of Oriental and African Studies (SOAS) ( email )

Thornhaugh Street
Russell Square: College Buildings 541
London, WC1H 0XG
United Kingdom
+020 7898 4053 (Phone)
+020 7898 4089 (Fax)

University of London - Centre for Financial and Management Studies (CeFIMS)

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London, WC1E 7HU
United Kingdom

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