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Exporting and firm performance: Evidence from India

Author

Listed:
  • Gupta, Apoorva

    (University of Nottingham)

  • Patnaik, Ila

    (National Institute of Public Finance and Policy)

  • Shah, Ajay

    (National Institute of Public Finance and Policy)

Abstract
The positive correlation between firm productivity and export status is well established. This correlation can arise from multiple alternative casual models. We investigate these relationships, harnessing the transition of several firms from serving the domestic market to exporting, in a dataset of Indian firms from 1989 to 2015. Each firm which made the transition is matched against a control which did not. The transitions take place across many years, thus permitting a matched event study in firm outcomes. We find there is self-selection of more productive firms into exporting. Firms that make the transition become bigger, but there is little evidence of learning by exporting, of improvements in productivity right after exporting commences. However, there is evidence of mprovement in productivity of export starters a couple of years before they begin to export.

Suggested Citation

  • Gupta, Apoorva & Patnaik, Ila & Shah, Ajay, 2018. "Exporting and firm performance: Evidence from India," Working Papers 18/243, National Institute of Public Finance and Policy.
    • Handle: RePEc:npf:wpaper:18/243
    Note: Working Paper 243, 2018
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    References listed on IDEAS

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    Cited by:

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    3. Prajukta Tripathy & Pragyanrani Behera & Bikash Ranjan Mishra, 2023. "Study of linkages between productivity, export, and outward foreign direct investment: An empirical perspective of Indian manufacturing industries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1527-1548, April.
    4. Nilanjan Banik & Misu Kim, 2022. "India–Republic of Korea CEPA: Assessment and Future Path," Economies, MDPI, vol. 10(5), pages 1-23, April.
    5. Mercè Sala-Ríos & Mariona Farré-Perdiguer & Teresa Torres-Solé, 2020. "Exporting and Firms’ Performance—What about Cooperatives? Evidence from Spain," Sustainability, MDPI, vol. 12(20), pages 1-22, October.

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    More about this item

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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