Market Reforms in India and the Quality of Economic Growth

In: The independent review: journal of political economy, Band 18, Heft 2, S. 241-262

Abstract

This paper investigates whether significant qualitative differences exist in consumer goods produced pre- and post liberalization in India by focusing on the changes in the quality of three goods in particular -- telephone services, televisions, and watches. It thus attempts to till the gap in the literature on India's growth experience; that is, it investigates if differing improvements in economic well-being were hidden behind the high growth rates recorded during the two periods. The paper focuses on several key characteristics of goods that together serve as a proxy for quality. Using primary as well as secondary data, the author studies the technology gap between goods in India and the world market at that time, the prevalence of defects or faults in the goods produced, the waiting time required to obtain a good, and the extent of product differentiation and variety. Adapted from the source document.