• Dr.Debaleena Chatterjee
• Somarata Chakraborty

The paper considers estimation of panel data models to capture a picture of the nature of Indian industry in the post liberalisation period. With data ranging from 1991 to 2015, the gamut of fiveheavyweight industries such as cement, drugs and pharmaceuticals, steel, automobile passenger vehicles and engine provide a framework that nests both the fixed and random effects set up. The aforementioned industries are selected on the basis of them playing prominent role in the post-liberalisation growth process. Industry data is secondary in nature and is retrieved from CMIE database. The study pivots around Herfindahl index which is a benchmark measure of concentration. Economic theory and empirical evidence suggest that, industry concentration presents a clear picture of the conduct and performance of the market structure. This paper checks the impact of economic indicators like size setup, ROCE, D/E ratio and sales on the concentration of these industries. Herfindahl index is used as a dependent variable of industry concentration. The effects of these determinants on shaping up of these prominent industries reveal the changes taking place due to trade liberalization. This paper attempts to compare two methods of panel and shows why one of them explains the changes better than the other. For instance, the possible reason why size setup would negative linkage with Herfindahl index in the steel industry could be due to liberalisation neutralizing the effect of size setup and encouraging increased concentration in Steel sector. We compare and contrast the results found from fixed panel versus random panel to show which approach explains the variation in concentration better and its subsequent implications.

Industry concentration, Panel Data, Herfindahl index,

"Comparative Panel Data Analysis across 5 Manufacturing Industries: A Case Study on Fixed versus Random effects.", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 6, page no.224-233, June-2018, Available :http://www.jetir.org/papers/JETIR1806418.pdf

"Comparative Panel Data Analysis across 5 Manufacturing Industries: A Case Study on Fixed versus Random effects.", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 6, page no. pp224-233, June-2018, Available at : http://www.jetir.org/papers/JETIR1806418.pdf