Exporting and firm performance: evidence from India
Ila Patnaik () and
Ajay Shah ()
Indian Growth and Development Review, 2018, vol. 12, issue 1, 83-104
Purpose - The purpose of this paper is to investigate the direction of causality between firm productivity and export status. The correlation can arise from multiple alternative causal models, and the authors study if more productive firms export, and/or if firms learn to export, and/or if firms learn by exporting. Design/methodology/approach - The authors investigate these relationships, harnessing the natural experiments offered by firms which transitioned into 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. Findings - The authors find there is self-selection of more productive firms into exporting. Firms that make the transition into exporting become bigger, but there is little evidence of learning by exporting, of improvements in productivity right after exporting commences. However, there is evidence of learning to export, that is there is improvement in productivity of export starters in comparison to their productivity a couple of years before they begin to export. Originality/value - The strength of the paper lies in an opportunity for sound measurement: we observe firms make a transition from domestic market into exporting. The transitions take place across many years, thus permitting a matched event study in firm outcomes. Using this methodology, the authors find that firms become more productive a few years before they export, that is they learn to export. They contribute to the literature by bringing evidence of “learning to export” from a developing country.
Keywords: Self-selection; Exports; Firm productivity; Learning by exporting; Learning to export; F43; L1; D24 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.emeraldinsight.com/10.1108/IGDR-04-2018 ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers
Working Paper: Exporting and Firm Performance: Evidence from India (2019)
Working Paper: Exporting and firm performance: Evidence from India (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eme:igdrpp:igdr-04-2018-0036
Ordering information: This journal article can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
Access Statistics for this article
Indian Growth and Development Review is currently edited by Professor Prabal Roy Chowdhury and Professor Chetan Ghate
More articles in Indian Growth and Development Review from Emerald Group Publishing
Bibliographic data for series maintained by Virginia Chapman ().