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What Was Protected? Measuring India's Tariff Barriers 1968-1992

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  • Ira N. Gang

    (Rutgers University)

  • Mihir Pandey

    (Ramjas College, Delhi)

Abstract

This paper investigates the inter-industry structure of production in India. It examines the structure of protection, asking how much protection each industry receives. We calculate, compare and analyze several measures of trade protection across agricultural, manufacturing and service industries. Nominal protection levels for both realized and nominal (published) tariff rates are calculated. Balassa and Corden measures of effective protection are constructed using both of these tariff rates. The focus is on highlighting the properties of each measure and on the difficulties of choosing a single measure of protection. The results show that protection levels were high when nominal tariffs are used as the basis of measurement, supporting earlier studies. A number of sectors exhibit negative effective protection rates, however, when realized tariff rates are used. In addition, the latter measure shows a greater variability and a different ranking of sectors as compared to the nominal tariff based measure.

Suggested Citation

  • Ira N. Gang & Mihir Pandey, 1998. "What Was Protected? Measuring India's Tariff Barriers 1968-1992," Departmental Working Papers 199615, Rutgers University, Department of Economics.
    • Handle: RePEc:rut:rutres:199615
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    File URL: http://www.sas.rutgers.edu/virtual/snde/wp/1996-15.pdf
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    Cited by:

    1. Mukherjee, Subhadip & Chanda, Rupa, 2017. "Differential effects of trade openness on Indian manufacturing firms," Economic Modelling, Elsevier, vol. 61(C), pages 273-292.
    2. Sangeeta Khorana & Nicholas Perdikis & May T. Yeung & William A. Kerr, 2010. "Bilateral Trade Agreements in the Era of Globalization," Books, Edward Elgar Publishing, number 13719.
    3. Menon, Nidhiya & Rodgers, Yana van der Meulen, 2009. "International Trade and the Gender Wage Gap: New Evidence from India's Manufacturing Sector," World Development, Elsevier, vol. 37(5), pages 965-981, May.
    4. Mihir Pandey, 2004. "Impact of trade liberalisation in manufacturing industry in India in the 1980s and 1990s," Indian Council for Research on International Economic Relations, New Delhi Working Papers 140, Indian Council for Research on International Economic Relations, New Delhi, India.

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