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Productivity and Learning-by-exporting: A Firm-level Analysis of Indian Manufacturing

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  • Sanja S. Pattnayak
  • Shandre M. Thangavelu

Abstract

type="main" xml:id="twec12136-abs-0001"> In this paper, we examine whether firms become productive by learning through exporting. To this end, we estimate the production function using microdata of Indian manufacturing firms operating in the period 1991–2001. In contrast to studies on developed countries, our results provide evidence that Indian manufacturing firms are experiencing a rise in productivity through entering export markets and thus experience the learning effect. We also find that there is a productivity rise prior to exporting. Therefore, our results also support the self-selection mechanism for exporting.

Suggested Citation

  • Sanja S. Pattnayak & Shandre M. Thangavelu, 2014. "Productivity and Learning-by-exporting: A Firm-level Analysis of Indian Manufacturing," The World Economy, Wiley Blackwell, vol. 37(7), pages 1016-1026, July.
    • Handle: RePEc:bla:worlde:v:37:y:2014:i:7:p:1016-1026
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    File URL: http://hdl.handle.net/10.1111/twec.2014.37.issue-7
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    Cited by:

    1. Lopez, Carmen & Yacine Haddoud, Mohamed & Kasturiratne, Dulekha, 2022. "Revisiting the innovation–export entry link through a configuration approach," Journal of Business Research, Elsevier, vol. 149(C), pages 927-937.
    2. Bhattacharya, Mita & Narayan, Paresh, 2015. "Output and labor productivity in organized manufacturing: A panel cointegration analysis for India," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 171-177.
    3. Pattnayak, Sanja Samirana & Chadha, Alka, 2022. "Servicification and manufacturing exports: Evidence from India," Economic Modelling, Elsevier, vol. 108(C).
    4. Sharma, Chandan, 2018. "Exporting, access of foreign technology, and firms’ performance: Searching the link in Indian manufacturing," The Quarterly Review of Economics and Finance, Elsevier, vol. 68(C), pages 46-62.
    5. Ronald B. Davies & Arman Mazhikeyev, 2021. "The glass border: Gender and exporting in developing countries," The World Economy, Wiley Blackwell, vol. 44(4), pages 879-903, April.
    6. N. Krasnopeeva & E. Nazrullaeva & A. Peresetsky & E. Shchetinin., 2016. "To export or not to export? The link between the exporter status of a firm and its technical efficiency in Russia’s manufacturing sector," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 7.

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