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Learning by Exporting: Evidence from India

Author

Listed:
  • Gupta, Apoorva

    (National Institute of Public Finance and Policy)

  • Patnaik, Ila

    (National Institute of Public Finance and Policy)

  • Shah, Ajay

    (National Institute of Public Finance and Policy)

Abstract

The empirical evidence on learning by exporting is mixed. In this paper, we examine whether productivity growth among Indian exporters is higher than that of non-exporters. After controlling for self-selection into exporting, we do not find evidence for learning by exporting in a panel of manufacturing firms. There is also no evidence of heterogeneity in learning by exporting with regard to age, size, or productivity. The study finds that exporters grow bigger at a significantly higher rate than their domestic counterparts. But the growth in size does not appear to translate into growth in productivity after entry into foreign markets. Instead, exporters exhibit a boost in productivity 1 year prior to entering export markets.

Suggested Citation

  • Gupta, Apoorva & Patnaik, Ila & Shah, Ajay, 2013. "Learning by Exporting: Evidence from India," Working Papers on Regional Economic Integration 119, Asian Development Bank.
    • Handle: RePEc:ris:adbrei:0119
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    Citations

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    Cited by:

    1. Cunha, P.A.M.F.V., 2005. "The value of cooperation : Studies on the performance outcomes of interorganizational alliances," Other publications TiSEM 59466e6c-1920-461e-b5e9-b, Tilburg University, School of Economics and Management.
    2. Fatou Cisse, 2017. "Do Firms Learn by Exporting or Learn to Export? Evidence from Senegalese Manufacturing Firms," Journal of African Development, African Finance and Economic Association (AFEA), vol. 19(1), pages 133-160.
    3. Ehouman Williams V. Ahouakan & M'Baye Diene, 2017. "Does School Quality Matter? Primary Schools Characteristics and Child Labour Intensity in Senegal," Journal of African Development, African Finance and Economic Association (AFEA), vol. 19(1), pages 113-131.
    4. Lai, Jung-Ho & Chang, Shao-Chi & Chen, Sheng-Syan, 2010. "Is experience valuable in international strategic alliances?," Journal of International Management, Elsevier, vol. 16(3), pages 247-261, September.
    5. Ma, Yulong & Sun, Huey-Lian & Tang, Alex P., 2003. "The stock return effect of political risk event on foreign joint ventures: evidence from the Tiananmen Square Incident," Global Finance Journal, Elsevier, vol. 14(1), pages 49-64, May.
    6. Sharma, Chandan, 2018. "Exporting, access of foreign technology, and firms’ performance: Searching the link in Indian manufacturing," The Quarterly Review of Economics and Finance, Elsevier, vol. 68(C), pages 46-62.
    7. 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.
    8. Xavier Meschi, 2005. "Apprentissage d’expériences des partenaires et survie des coentreprises," Revue Finance Contrôle Stratégie, revues.org, vol. 8(4), pages 121-152, December.

    More about this item

    Keywords

    Exports; self-selection; learning by exporting (LBE); firm productivity;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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