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Technological Efforts, Firm Size and Exports in the Basic Chemical Industry in India

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  • Savita Bhat
  • K. Narayanan

Abstract

This paper attempts to examine the role of technological efforts and firm size in determining the export behaviour of firms belonging to the basic chemical industry in India. The basic chemical industry is an important industry that provides intermediate chemicals to firms operating in diverse industries in both India and abroad. In this study technological efforts have been considered in terms of in-house R&D, import of embodied technology, and import of disembodied technology. Three different econometric models, namely, the Tobit, the two-part (Probit + Truncation) and the sample selection (Heckman), have been used for estimation and the results have been compared. The authors find evidence in support of the view that export behaviour of the firm can be modelled in a more appropriate manner using a two-part or a sample selection model rather than the popular Tobit model. The results of the econometric exercise confirm that technological efforts, firm size and other firm-specific characteristics are important in explaining the export behaviour of the firms.

Suggested Citation

  • Savita Bhat & K. Narayanan, 2009. "Technological Efforts, Firm Size and Exports in the Basic Chemical Industry in India," Oxford Development Studies, Taylor & Francis Journals, vol. 37(2), pages 145-169.
    • Handle: RePEc:taf:oxdevs:v:37:y:2009:i:2:p:145-169
    DOI: 10.1080/13600810902859528
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    Cited by:

    1. Binoy Goswami & Hiranya K. Nath, 2021. "India'S Revealed Comparative Advantages In Merchandise Trade With Country Groups At Different Levels Of Development," Contemporary Economic Policy, Western Economic Association International, vol. 39(2), pages 377-397, April.
    2. 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.
    3. Pulak Mishra & Neha Jaiswal, 2017. "Impact of Mergers and Acquisitions on Firms’ Export Competitiveness," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 18(1), pages 1-20, March.
    4. Sidheswar Panda & Ruchi Sharma, 2023. "Does Innovation Spur Export Performance across Countries? An Investigation from Meta-regression Analysis," Millennial Asia, , vol. 14(3), pages 341-359, September.
    5. Keshari, Pradeep Kumar, 2012. "FDI and firm level export competitiveness in the Indian machinery industry," MPRA Paper 47069, University Library of Munich, Germany.
    6. M. Padmaja & Subash Sasidharan, 2017. "Sunk Costs, Firm Heterogeneity, Export Market Entry and Exit: Evidence from India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 15(2), pages 367-393, June.
    7. R. Rijesh, 2021. "Liberalization, Import of Capital Goods, and Industrial Exports: Evidence from Indian Manufacturing Sectors," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 13(1), pages 81-103, January.
    8. Suresh Ramaiah & Gopal Krishna Roy, 2021. "Determinants of Exports Behaviour of India’s Agro-processing Firms: Role of Technology, Imported Raw Materials and Logistics Infrastructure," Vision, , vol. 25(2), pages 201-208, June.
    9. Nguyen, Quyen T.K. & Almodóvar, Paloma & Wei, Ziyi, 2022. "Intra-firm and arm’s length export propensity and intensity of MNE foreign subsidiaries," Journal of Business Research, Elsevier, vol. 145(C), pages 288-308.
    10. Franco, Chiara & Sasidharan, Subash, 2010. "MNEs, technological efforts and channels of export spillover: An analysis of Indian manufacturing industries," Economic Systems, Elsevier, vol. 34(3), pages 270-288, September.
    11. Ivus, Olena & Jose, Manu & Sharma, Ruchi, 2021. "R&D tax credit and innovation: Evidence from private firms in india," Research Policy, Elsevier, vol. 50(1).
    12. Pramod Kumar Naik, 2014. "R&D Intensity and Market Valuation of Firm: A Study of R&D Incurring Manufacturing Firms in India," Journal of Studies in Dynamics and Change (JSDC), ISSN: 2348-7038, Voices of Inclusive Change and Expressions- (VOICE) Trust, Dehradun, Uttarakhand, vol. 1(7), pages 295-308., November.

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