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Sources & fixes / I-E16

In an India study, a ten-point cut in tariffs on parts and other inputs raised firm output from the same resources by about 4.8%. The same cut on finished goods raised it by about 0.32%.

Checked 2026-10-20. Each record says what the source can and cannot show.

What this covers

Place: India
Time covered: 1989 to 1997, around the 1991 reform

What this does not prove

Firm productivity, not GDP or jobs. Inputs are the parts and goods firms use to make other goods. The study covers India's 1990s reforms.

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Trade Liberalization and Firm Productivity: The Case of India ↗

Topalova and Khandelwal / Review of Economics and Statistics · 2011-08

Where to look: Section 4.1.3: ten-point input tariff cut, 4.8% firm productivity gain; output tariff cut, 0.32%

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In an India study, a ten-point cut in tariffs on parts and other inputs raised firm output from the same resources by about 4.8%. The same cut on finished goods raised it by about 0.32%.

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Checked:

What this does not show: Firm productivity, not GDP or jobs. Inputs are the parts and goods firms use to make other goods. The study covers India's 1990s reforms.

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