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Determinants of Import Intensity of India’s Manufactured Exports Under the New Policy Regime

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  • GOLDAR, BISHWANATH

    (Institute of Economic Growth, Delhi and Center for International Trade and Development School of International Studies Jawaharlal Nehru University, New Delhi)

Abstract

This paper attempts to understand the factors behind the significant increase in import intensity of India’s manufactured exports that has taken place in the post-reform period. The industry-level analysis indicates that the increase in import intensity of manufactured exports is attributable partly to changes in product composition of exports and partly to growing export orientation of Indian manufacturing industries. A major contributing factor appears to be the liberalization of import policy in India.Firm-level econometric analysis reveals that exporting firms are more import intensive than non-exporting firms.A significant positive impact of export intensity on import intensity of firms is clearly indicated.The econometric results also show that firms’ decisions to import and export are interdependent. Both decisions may be rooted in firm heterogeneity.

Suggested Citation

  • Goldar, Bishwanath, 2013. "Determinants of Import Intensity of India’s Manufactured Exports Under the New Policy Regime," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 48(1), pages 221-237.
    • Handle: RePEc:dse:indecr:0070
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    Cited by:

    1. Anusree Paul & Alokesh Barua, 2020. "Integration in Manufacturing Trade in Asia: A Cross-country Scenario with Special Reference to India," Journal of Asian Economic Integration, , vol. 2(1), pages 27-43, April.
    2. Thakur–Wernz, Pooja & Wernz, Christian, 2022. "Impact of stronger intellectual property rights regime on innovation: Evidence from de alio versus de novo Indian bio-pharmaceutical firms," Journal of Business Research, Elsevier, vol. 138(C), pages 457-473.
    3. Bishwanath Goldar & Deb Kusum Das & Pilu Chandra Das & Neha Gupta, 2020. "Domestic Versus Imported Contents in Exports: The Case of India’s Merchandise Trade," Journal of South Asian Development, , vol. 15(1), pages 62-96, April.
    4. Mahua Paul & Ramaa Arun Kumar, 2021. "Import intensity of India’s manufactured exports: an industry level analysis," Indian Economic Review, Springer, vol. 56(1), pages 67-90, June.
    5. Santosh Mehrotra & Jajati K. Parida, 2021. "Stalled Structural Change Brings an Employment Crisis in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(2), pages 281-308, June.
    6. Mehrotra, Santosh & Parida, Jajati K., 2017. "Why is the Labour Force Participation of Women Declining in India?," World Development, Elsevier, vol. 98(C), pages 360-380.

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