Product Diversification in Indian Manufacturing - discussion paper from the Centre for Economic Performance
Wednesday, 8 November 2017 15:37
The Centre for Economic Performance has published a discussion
paper entitled 'Product Diversification in Indian Manufacturing.'
The abstract states: The presence of global value chains
challenges the neoclassical idea of the firm since it implies firms
are not monolithic but are rather interdependent on the larger
economic environment. Examining establishments, the smallest units
of production within firms, sheds light on the microeconomic
incentives determining the location of...Request free trial
The Centre for Economic Performance has published a discussion
paper entitled 'Product Diversification in Indian
Manufacturing.'
The abstract states:
The presence of global value chains challenges the neoclassical
idea of the firm since it implies firms are not monolithic but are
rather interdependent on the larger economic environment. Examining
establishments, the smallest units of production within firms,
sheds light on the microeconomic incentives determining the
location of production and whether a firm produces a good or
sources it.
Most work on multiproduct firms looks at developed countries, but
constraints on firm growth are greater in developing economies. We
examine multiproduct establishments in India during a high growth
period. Multiproduct establishments made up the bulk of
manufacturing production, and their product turnover contributed 28
per cent to net sales growth. Unlike the nineties which witnessed
drastic liberalization, establishments in the two-thousands dropped
products at rates similar to those for the US. Sales dispersion
across products also predicts product addition.
To read the full paper, CLICK HERE
|
