Trade and productivity: self-selection or learning-by-exporting in India

Jamal Haidar ()

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Recent literature tried to explain the Indian growth miracle in different ways, ranging from trade liberalization to industrial reforms. Using data on Indian manufacturing firms, this paper analyzes the relationship between firm's productivity and export market participation during 1991-2004. While it provide evidence of the self-selection hypothesis by showing that more productive firms become exporters, the results do not show that entry into export markets enhances productivity. The paper examines the explanation of self selection hypothesis for total factor productivity differences across 33,510 exporting and non-exporting firms. It uses propensity score matching to test the learning-by-exporting hypothesis. In line with the prediction of recent heterogeneous firm models of international trade, the main finding of the paper is : more productive firms become exporters but it is not the case that learning by exporting is a channel fuelling growth in Indian manufacturing.

Keywords: heterogeneous firm model; Trade; learning-by-exporting hypothesis; self-selection hypothesis; total factor productivity; causality; facteur total de productivité; modèles récents des entreprises hétérogènes; Commerce (search for similar items in EconPapers)
Date: 2012-05
New Economics Papers: this item is included in nep-dev and nep-eff
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00717624v1
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Citations: View citations in EconPapers (51)

Published in 2012

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Related works:
Journal Article: Trade and productivity: Self-selection or learning-by-exporting in India (2012)
Working Paper: Trade and productivity: self-selection or learning-by-exporting in India (2012)
Working Paper: Trade and productivity: self-selection or learning-by-exporting in India (2012)
Working Paper: Trade and Productivity: Self-Selection or Learning-by-Exporting in India (2012)
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