LIBERALIZATION'S IMPACT ON THE INDIAN SEED INDUSTRY: COMPETITION, RESEARCH, AND IMPACT ON FARMERS
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This article attempts to measure the impact of India's limited liberalization on the seed industry and on farmers. Using a unique data set on the structure, research, and sales of private seed firms at two points in time, 1987 and 1995, we provide evidence that liberalization increased the competitiveness of the seed industry, and increased the amount of research by Indian and foreign seed firms. Then, using government district level data and data collected from these firms, we show that private hybrids increased farmers' yields. This suggests that Indian farmers are the true beneficiaries of liberalization and that policies that encourage more competition and more research will provide future benefits to farmers.