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The Role of Export Incentives and Bank Credit on the Export Survival of Firms in India During COVID-19

Author

Listed:
  • Radeef Chundakkadan

    (Indian Institute of Technology Bombay, Mumbai, India)

  • Subash Sasidharan

    (Indian Institute of Technology (IIT), Madras)

  • Ketan Reddy

    (Indian Institute of Management Raipur, India)

Abstract

The aim of this study is threefold. First, we analyse the relationship between export incentives on firm survival during the coronavirus disease (COVID-19) crisis; second, we explore the nexus between bank dependency and survival in the export market; and finally, we test the complementarity and substitutability effect of export incentives and bank dependency on export market survival. We use firm-level information on Indian firms from 2016 to 2022, covering 4 years of the pre-pandemic period and 2 years of the post-pandemic period. We find that both export incentives and bank dependency improve the probability of export market survival in the post-pandemic period. These results are applicable to both the manufacturing and services sector, stand-alone firms, and business group affiliates. Our results remain robust while employing alternative proxies for the primary variable of interest and different methodologies.

Suggested Citation

  • Radeef Chundakkadan & Subash Sasidharan & Ketan Reddy, 2023. "The Role of Export Incentives and Bank Credit on the Export Survival of Firms in India During COVID-19," Working Papers DP-2023-12, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2023-12
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    References listed on IDEAS

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    Keywords

    Export incentives; bank dependency; survival; export;
    All these keywords.

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