Does Investing in Technology Affect Exports? Evidence from Indian Firms

Rana Hasan and Mayank Raturi

Review of Development Economics, 2003, vol. 7, issue 2, 279-293

Abstract: The authors use firm‐level data from Indian manufacturing industries to explore the determinants of exports, focusing on the role played by technology. The empirical analysis, which distinguishes between a firm's decision to export and the volume of its exports conditional on its having decided to export, reveals that investments in technology via R&D and technology transfer agreements can facilitate the entry of Indian firms into export markets. However, their influence on the volume of exports is fairly limited. Factors with a more broad‐based influence on both export participation and volumes include labor intensity and, especially, firm size.

Date: 2003
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