Department of Humanities and Social Sciences

Indian Institute of Technology Ropar

HSS Seminar

What explains Exit behaviour in Indian Manufacturing Industries?


Prof Vinish Kathuria

February 23, 2017 (Thursday) at 3:15 PM

Venue: Conference Room 2

Studies of entry and exit rates at a point in time are useful in examining the turnover of establishments. This is because of the positive relationship between firm turnover and economic growth. Despite the considerable relaxation in entry barriers post 1991 liberalisation, exit barriers still exist in India through employment security provisions of the Industrial Disputes Act of 1947 and much longer bankruptcy procedures. Apart from the regulatory environment faced by the manufacturing sector, locational factors also could exert a significant influence on firm’s (entry and) exit decisions. The main purpose of this paper is to investigate the determinants of firm exit focusing on firm and sector-specific factors and other potential constraints that may lead to exit. This is tested using plant or ‘factory’ level data, extending from 1998-99 to 2012-13, that come from the Annual Survey of Industries (ASI) published by the Central Statistical Organisation.


Brief Bio-sketch of the speaker

Dr. Vinish Kathuria is a Professor at Shailesh J. Mehta School of Management. His teaching and research activities relate to economics mainly in the fields of Industrial Economics, Energy Economics, Economics of Regulation and Economics of pollution. Before joining SJM SOM, he was on Fulbright Senior Researcher fellowship to the University of Colorado, Boulder (US). He has several publications in international journals including Journal of Comparative Economics, World Development, Energy Policy, Energy, Oxford Economic Papers, Ecological Economics, Applied Economics, Journal of International Development, Transportation Research, Technological Forecasting and Social Change among others. He has pursued his post-doc from the University of Gothenburg, Sweden in the area of Environmental Economics and PhD internship from United Nations University / Institute for New Technologies (UNU/INTECH), Maastricht, The Netherlands. His thesis was short-listed by UNESCO for its Management of Social Transformation (MOST) award in the year 2000-01. In 2012 he was awarded Mahalanobis Memorial Medal (National) Award 2010 in the area of Quantitative Economics.