IDEAS home Printed from https://ideas.repec.org/h/spr/isbchp/978-981-10-0083-6_5.html
   My bibliography  Save this book chapter

Productivity Heterogeneity and Export Market Participation: A Study of Indian Manufacturing Firms

In: Globalization of Indian Industries

Author

Listed:
  • Ronny Thomas

    (Indian Institute of Technology Bombay)

  • K. Narayanan

    (Indian Institute of Technology Bombay)

Abstract

This chapter is an attempt to understand the nature of productivity heterogeneity and firm level export market participation in the Indian manufacturing industry. We test two alternative hypothesis first, self-selection of most productive firms into the export market and second, learning by exporting, where firms become more productive once they enter the export market. We also observe the role of R&D investment on export market participation of firms. The paper employs firm level data obtained from the Centre for Monitoring Indian Economy (CMIE) for the period 1990–2009 for analysis. Firm level Total factor productivity is estimated using Jevinsohn and Petrin (2003 Rev Econ Stud 70:317–341) method. Preliminary analysis indicates that exporting firms are more productive than the non-exporting firms in the Indian industry. However, the extent of this productivity difference is not very large compared to other countries. Study reports self-selection of more productive firms into the export market for the period from 1990 to 1999. Investment in R&D is important for the decision of the firms to enter the export market 1999–2009. We found no evidence in support of learning by exporting for the period from 1990 to 2009. However, continued participation in the export market and the intensity of exporting is associated with growth in productivity, indicating the presence of learning by exporting for the period from 2000 to 2009.

Suggested Citation

  • Ronny Thomas & K. Narayanan, 2016. "Productivity Heterogeneity and Export Market Participation: A Study of Indian Manufacturing Firms," India Studies in Business and Economics, in: Filip De Beule & K. Narayanan (ed.), Globalization of Indian Industries, edition 1, chapter 0, pages 97-120, Springer.
  • Handle: RePEc:spr:isbchp:978-981-10-0083-6_5
    DOI: 10.1007/978-981-10-0083-6_5
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bishwanath Goldar & Yashobanta Parida & Deepika Sehdev, 2017. "Reduction in Carbon Emissions Intensity and Impact on Export Competitiveness: Evidence from Indian Manufacturing Firms," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 8(02), pages 1-30, June.
    2. Sudhir Rana & Partha P. Saikia & Munim K. Barai, 2018. "Globalization and Indian Manufacturing Enterprises," FIIB Business Review, , vol. 7(3), pages 167-175, September.
    3. Bishwanath Goldar, 2023. "ICT Investment, Adoption of ISO 14000 Certification, and Export Performance in Indian Manufacturing Plants," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 21(3), pages 523-553, September.

    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:spr:isbchp:978-981-10-0083-6_5. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.