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Does it pay to venture abroad? Exporting behavior and the performance of firms in Indian industry

Author

Listed:
  • Pradeep K. Chhibber

    (Department of Political Science, University of Michigan, Ann Arbor, MI 48109, USA)

  • Sumit K. Majumdar

    (University of Michigan Business School, Ann Arbor, MI 48109, USA)

Abstract

Using contemporary data for a firm-level sample of over 600 Indian firms, this paper investigates the impact that an export-orientation has on the profitability of the firms studied. The results, based on a two-stage least squares method, establish a positive and significant relationship between firms' levels of exports and profitability. For firms from developing and transition economies like India it does pay to venture abroad, and the ability to sell goods overseas has a significant impact on firms' economic performance. © 1998 John Wiley & Sons, Ltd.

Suggested Citation

  • Pradeep K. Chhibber & Sumit K. Majumdar, 1998. "Does it pay to venture abroad? Exporting behavior and the performance of firms in Indian industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 19(2), pages 121-126.
  • Handle: RePEc:wly:mgtdec:v:19:y:1998:i:2:p:121-126
    DOI: 10.1002/(SICI)1099-1468(199803)19:2<121::AID-MDE871>3.0.CO;2-1
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    Cited by:

    1. Sumit Majumdar & Kunal Sen, 2010. "Corporate borrowing and profitability in India," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(1), pages 33-45.
    2. Natália Barbosa & Helen Louri, 2005. "Corporate Performance: Does Ownership Matter? A Comparison of Foreign- and Domestic-Owned Firms in Greece and Portugal," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 27(1), pages 73-102, August.
    3. Chhibber, Pradeep K & Majumdar, Sumit K, 1999. "Foreign Ownership and Profitability: Property Rights, Control, and the Performance of Firms in Indian Industry," Journal of Law and Economics, University of Chicago Press, vol. 42(1), pages 209-238, April.
    4. Majumdar, Sumit K., 2016. "R&D and the overseas earnings of Indian firms," Technology in Society, Elsevier, vol. 44(C), pages 104-111.
    5. Sumit K. Majumdar, 2007. "Private Enterprise Growth and Human Capital Productivity in India," Entrepreneurship Theory and Practice, , vol. 31(6), pages 853-872, November.
    6. Farooq Omar & El Kacemi Youssef, 2011. "Ownership Concentration, Choice of Auditors, and Firm Performance: Evidence from the MENA Region," Review of Middle East Economics and Finance, De Gruyter, vol. 7(2), pages 1-17, September.

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