Export and Liberalization: A Simple Industrial Organization Approach

This paper presents a simple theory towards putting forward two hypotheses that can be empirically verified with regard to the export behaviour of oligopoly firms in the post-liberalization period in selective Indian industries. These hypotheses are – (1) In the presence of import protection, large oligopoly firms export to protect high domestic market price and (2) within the size group of large scale firms, larger firms will have higher export orientation.