This paper investigates some issues relating to the phenomenon of increasing returns: (1) What is the role of economies of scale in the theory of increasing returns? (2) Do pecuniary external economies lead to market failure and justify intervention in the market mechanism? (3) Are increasing...

Time-series work on trade policy and growth is handicapped by the difficulty of measuring 'trade policy'. Established definitions of trade orientation such as 'bias' or the 'effective rate of protection' are difficult to operationalise in a time-series context because of enormous data...

This study is the first to use Johansen's cointegration approach for India in the analysis of the long-term dynamics between the black and official exchange rates for the period 1953-1993. The study also estimates the long-run elasticity of the official rate with respect to the black market...