Learning across policy regimes: The impact of protection vis-à-vis competition in the Indian automotive industry

Saripalle, Madhuri (2006): Learning across policy regimes: The impact of protection vis-à-vis competition in the Indian automotive industry.

Abstract

Learning has been recognized as an important factor in explaining the growth of firms in both industrial organization theory and literature. However, few models have attempted to relate the learning and growth literature with the industrial policy regime, especially in economies heavily regulated by government policies. The present study attempts to apply one such model of growth and learning of firms across three different industrial policy regimes in the Indian automotive industry. It tries to analyze whether learning is promoted by a competitive or a protective policy regime. It also tries to decompose learning into several types to understand the mechanism underlying the growth process. In doing so, it relies on the growth-size distribution literature.

• Item Type: MPRA Paper
• Institution: University of Connecticut
• Language: English
• Keywords: Learning; growth; policy regime; automobile Industry; India; Asia
• Subjects: L - Industrial Organization > L5 - Regulation and Industrial Policy; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models; L - Industrial Organization > L6 - Industry Studies: Manufacturing > L62 - Automobiles ; Other Transportation Equipment ; Related Parts and Equipment

References

1. Automobile Component Manufacturers Association (ACMA), “Facts and Figures”, various issues. 2. Alice H. Amsden (1989), “Asia's next giant: South Korea and late industrialization”, Oxford University Press, New York. 3. Barnes and Kaplinsky, “Globalization and trade policy reform: whither the automobile component sector in South Africa”, Competition and Change, Volume 4, No.2, 2000, pp211-243. 4. Basant, Rakesh and Pankaj Chandra (2002) " Building Technological capabilities in a liberalizing developing economy: firm strategies and public policy", Economics of Innovation and New Technology, Vol.11 (4-5), pp.399-421. 5. Benkard C. Lanier (2000), "Learning and Forgetting: The Dynamics of Aircraft Production," American Economic review, American Economic Association, vol. 90(4), pages 1034-1054. 6. Bowonder, B. (1998) "Competitive and Technology Management Strategy: case study of Telco", International Journal of technology Management, 15(6-7), June-July, pp: 646-681. 7. Cohen, W.M.& D.A. Levinthal (1990), “Absorptive Capacity: A new perspective on learning and innovation”, Administrative Science Quarterly, vol. 35, 1990 8. Costa, Ionara (2001), “Ownership and Technological Capabilities in Brazil”, Paper presented at the DRUID Academy winter conference. 9. D'Costa, A. P. (1995a). “The restructuring of the Indian automobile industry: Indian state and Japanese capital”, World Development, 23(3), pp: 485-502. 10. Dosi, Giovanni.; Keith Pavitt and Luc Soete (1990) "The Economics of Technical Change and International Trade", New York University Press. 11. Dosi, Giovanni (1984), Technical change and Industrial transformation, London, MacMillan. 12. Ernst,D; Ganiatsos,T and Mytelka,L (edited 1998) "Technological Capabilities and Export Success in Asia", London, Routledge. 13. Evans, D.S (1987), "Tests of Alternative theories of growth of firms", Journal of Political Economy, 95(4), pp: 657-674. 14. Fagerberg. J (1987), "A technology Gap Approach to why growth rates differ", Research Policy, 16 (2-4), 87-99. 15. Figueiredo Paulo.N (2001), “ Technological Capability-Accumulation Paths and the underlying learning processes: A review of empirical Studies”, SPRU, University of Sussex, U.K. http://copenhagen.jibs.net/LitReview/2001/2001_1_26.pdf 16. Fransmann Martin & King Kenneth (Ed.), “Technological Innovation, Industrial Organization and Comparative Advantages of Latin American Metalworking Industries", Technological Capability in the Third World, 1984. 17. Geroski, Paul (1998), "An Applied Econometrician's View of Large Company Performance", Review of Industrial Organization, 13; 271-293. 18. Geroski, P., S.Lazarova, G.Urga and C.Walters (2001), “Are differences in firm size transitory or permanent?”, Journal of Applied Economics (forthcoming). 19. Geroski, Paul; Marianna Mazzucato, (2002) "Learning and sources of corporate growth", Industrial and Corporate Change, August; 11;4; pp:623-644. 20. Gibrat R. (1930), "Une loi des réparations économiques: l’effet proportionnel", Bull. Statist. gén Fr. 19, 469. 21. Grilliches, Zvi (1979), "Issues in Assessing the contribution of R&D to productivity growth", Bell Journal of Economics, 10(1). 22. Hall, Bronwyn H (1987). "The Relationship Between Firm Size and Firm Growth in the U. S. Manufacturing Sector," Journal of Industrial Economics, Vol. XXXV, No.4, June 1987, pp. 583-606. 23. Hobday, M (1995), ‘'East Asian latecomer firms: learning the technology of electronics’', World Development, vol. 23, no. 7, (July), pp.1171-93. 24. Kathuria, Sanjay (1996), " Competing through Technology and Manufacturing: A Study of the Indian Commercial Vehicle Industry", OUP. 25. Katz, Jorge (1984), “Domestic Technological Innovations and Dynamic Comparative Advantage: Further Reflections on a Comparative Case-Study Program”, Journal of Development Studies, 16(2), pp.13-38. 26. Katz, Jorge ed., (1987) "Technology Generation in Latin American Manufacturing Industries", St.Martin's Press, NY. 27. Lane, I. Julia, Alan G. Isaac and David W. Stevens (1996), “Firm Heterogeneity and Worker Turnover”, Review of Industrial Organization, Vol.11, no.3, pp.275-291. 28. Langlois, Richard (1999), “Capabilities and Governance: The Rebirth of Production in the theory of Economic Organization” (with Nicolai J. Foss), Kyklos 52(2): 201-218. 29. ___________ (1992) "Transaction-cost Economics in Real time Industrial and Corporate Change 1(1): 99-127, reprinted in Nicolai J. Foss, ed., Resources, Firms, and Strategies: A Reader in the Resource-Based Perspective. Oxford: Oxford University Press 1997, pp. 286-305. 30. Narayana, K, (1998) " Technology Acquisition, De-regulation and Competitiveness: A study of Indian Automobile Industry", Research Policy, 27(2), 215-228. 31. Nelson, Richard R. and Sidney G. Winter (1982), An Evolutionary Theory of Economic Change. Belknap Press/Harvard University Press: Cambridge. 32. Nelson, Richard, (1987) " Innovation and Economic Development Theoretical Retrospect and prospect", in Katz, Jorge ed., Technology Generation in Latin American Manufacturing Industries, St.Martin's Press, NY. 33. Pakes, Ariel; Schankerman, Marke (1980), “An exploration into the determinants of research intensity”, NBER working paper no.438, January 1980. 34. Penrose, Edith (1959/1995), The Theory of the Growth of the Firm. Oxford University Press: Oxford. 35. Quentin, Erwan and John J. Stevens (2003), “Firm specific human capital versus job matching: a new test”, Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System, U.S. 36. Spence, M. (1981), “The learning curve and competition”, Bell Journal of Economics, 12, pp.49-70. 37. Society for Indian Automobile Manufacturers (SIAM), Annual Reports, various years. 38. John Sutton, 1997. "Gibrat’s Legacy”, Journal of Economic Literature, American Economic Association, vol. 35(1), pages 40-59.