IDEAS home Printed from https://ideas.repec.org/a/sae/miceco/v5y2017i1p14-34.html
   My bibliography  Save this article

Cost-effectiveness, Competitiveness and Export Performance of Indian Private Firms

Author

Listed:
  • Lakshmi K. Raut

Abstract

This paper formulates a model of the optimal export decision of private firms and then empirically studies the effect of firm size, R&D activities, competitiveness and trade policies on export performance of Indian private firms during the period 1975–1986. India practised restrictive trade and industrial policies and introduced partial liberalization of trade policies in the early 1980’s to encourage exports. The paper argues that the Cragg model is more appropriate to model firms’ export behaviours under India’s restrictive trade policies than the commonly used Tobit model. The evaluation of the export promotion and partial import liberalization policies of 1980 based on the Tobit model is found to be qualitatively quite different from the evaluation based on the Cragg model. The LR and LM specification tests reject the Tobit model against the Cragg model in all specifications.

Suggested Citation

  • Lakshmi K. Raut, 2017. "Cost-effectiveness, Competitiveness and Export Performance of Indian Private Firms," Studies in Microeconomics, , vol. 5(1), pages 14-34, June.
    • Handle: RePEc:sae:miceco:v:5:y:2017:i:1:p:14-34
    DOI: 10.1177/2321022216670236
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/2321022216670236
    Download Restriction: no
    File URL: https://libkey.io/10.1177/2321022216670236?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(3), pages 903-947.
    2. Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997. "Spillovers, foreign investment, and export behavior," Journal of International Economics, Elsevier, vol. 43(1-2), pages 103-132, August.
    3. Sterlacchini, Alessandro, 1999. "Do innovative activities matter to small firms in non-R&D-intensive industries? An application to export performance," Research Policy, Elsevier, vol. 28(8), pages 819-832, November.
    4. Herbert Glejser & Alexis Jacquemin & Jean Petit, 1980. "Exports in an Imperfect Competition Framework: An Analysis of 1,446 Exporters," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(3), pages 507-524.
    5. Raut, Lakshmi K., 1995. "R & D spillover and productivity growth: Evidence from Indian private firms," Journal of Development Economics, Elsevier, vol. 48(1), pages 1-23, October.
    6. Lakshmi K. Raut, 2003. "R&D Activities and Export Performance of Indian Private Firms," International Trade 0307002, University Library of Munich, Germany.
    7. Lin, Tsai-Fen & Schmidt, Peter, 1984. "A Test of the Tobit Specification against an Alternative Suggested by Cragg," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 174-177, February.
    8. Wakelin, Katharine, 1998. "Innovation and export behaviour at the firm level," Research Policy, Elsevier, vol. 26(7-8), pages 829-841, April.
    9. Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-564, September.
    10. L. K. Raut, 1988. "R & D Behaviour of Indian Firms: A Stochastic Control Model," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 23(2), pages 207-229, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richard Harris & John Moffat, 2011. "R&D, Innovation and Exporting," SERC Discussion Papers 0073, Centre for Economic Performance, LSE.
    2. Lakshmi K. Raut, 2003. "R&D Activities and Export Performance of Indian Private Firms," International Trade 0307002, University Library of Munich, Germany.
    3. Imbriani, Cesare & Morone, Piergiuseppe & Testa, Giuseppina, 2008. "Exporting quality: is it the right strategy for the Italian manufacturing sector?," MPRA Paper 13327, University Library of Munich, Germany.
    4. Gopinath, Munisamy & Sheldon, Ian M. & Echeverria, Rodrigo, 2007. "Firm Heterogeneity and International Trade: Implications for Agricultural and Food Industries," Trade Issues Papers 9349, International Agricultural Trade Research Consortium.
    5. Michael Bleaney & Katharine Wakelin, 2002. "Efficiency, innovation and exports," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(1), pages 3-15, February.
    6. Marco Grazzi & Nanditha Mathew & Daniele Moschella, 2021. "Making one’s own way: jumping ahead in the capability space and exporting among Indian firms," Journal of Evolutionary Economics, Springer, vol. 31(3), pages 931-957, July.
    7. Chiara Franco & Subash Sasidharan, 2009. "MNEs and Export Spillovers: An Analysis of Indian Manufacturing Industries," Working Papers 2009-049, Madras School of Economics,Chennai,India.
    8. Ozcelik, Emre & Taymaz, Erol, 2004. "Does innovativeness matter for international competitiveness in developing countries?: The case of Turkish manufacturing industries," Research Policy, Elsevier, vol. 33(3), pages 409-424, April.
    9. Stephan Brunow & Luise Grünwald, 2014. "Exports, agglomeration and workforce diversity: An empirical assessment of German establishments," Norface Discussion Paper Series 2014008, Norface Research Programme on Migration, Department of Economics, University College London.
    10. Raffaele Brancati & Emanuela Marrocu & Manuel Romagnoli & Stefano Usai, 2018. "Innovation activities and learning processes in the crisis: evidence from Italian export in manufacturing and services," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(1), pages 107-130.
    11. Marco Grazzi & Nanditha Mathew & Daniele Moschella, 2017. "Efficiency, innovation, and imported inputs: determinants of export performance among Indian manufacturing firms," LEM Papers Series 2017/09, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    12. R Harris & Q Li, "undated". "Exporting, R&D and Absorptive Capacity in UK Establishments: Evidence from the 2001 Community Innovation Survey," Working Papers 2006_19, Business School - Economics, University of Glasgow.
    13. Tomiura, Eiichi, 2007. "Effects of R&D and networking on the export decision of Japanese firms," Research Policy, Elsevier, vol. 36(5), pages 758-767, June.
    14. Kawtar Dkhissi, 2014. "Impact des accords de libre échange sur la propension et l'intensité des exportations des entreprises au Maroc," Post-Print hal-01335587, HAL.
    15. Rodríguez-Pose, Andrés & Tselios, Vassilis & Winkler, Deborah & Farole, Thomas, 2013. "Geography and the Determinants of Firm Exports in Indonesia," World Development, Elsevier, vol. 44(C), pages 225-240.
    16. Marie-Ange Véganzonès-Varoudakis & Arup Mitra & Chandan Sharma, 2012. "Are Reforms Productive? Explaining Productivity and Efficiency in the Indian Manufacturing," Post-Print hal-03058727, HAL.
    17. Qun Bao & Ninghua Ye & Ligang Song, 2016. "Congested Export Spillover in China," Review of Development Economics, Wiley Blackwell, vol. 20(1), pages 272-282, February.
    18. de Pineres, Sheila Amin Gutierrez, 1999. "Externalities in the agricultural export sector and economic growth: a developing country perspective," Agricultural Economics, Blackwell, vol. 21(3), pages 257-267, December.
    19. Ivan Duran & Michael Ryan, 2014. "Spillover Effects from Inward FDI on the Exporting Decisions of Chilean Manufacturing Plants," Journal of Industry, Competition and Trade, Springer, vol. 14(3), pages 393-414, September.
    20. Koenig, Pamina & Mayneris, Florian & Poncet, Sandra, 2010. "Local export spillovers in France," European Economic Review, Elsevier, vol. 54(4), pages 622-641, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:miceco:v:5:y:2017:i:1:p:14-34. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.