Publication - Project Report
This project examined the relationship between market power and industrial agglomeration/clusters, such as special economic zones (SEZs), in order to better evaluate the impacts of development policies that promote or support industrial clusters. We addressed whether any industrial agglomerations are associated with anti-competitive or collusive behavior; if so, what characteristics or types of industries are most vulnerable to anti-competitive behavior; and whether industrial cluster policies have contributed to anti-competitive behavior.
We also assessed the costs of anti-competitive behavior on domestic producers, domestic consumers, and foreign purchasers, and whether these are substantial enough to negate anticipated benefits. Finally, a comparative analysis examined the extent to which these findings are common both within and across India and China, and in what ways they differ.