Determinants of Exports of Information Technology in India
Sangita Dutta Gupta,
Ajitava Raychaudhuri () and
Sushil Haldar ()
South Asia Economic Journal, 2015, vol. 16, issue 1, 64-81
The information technology (IT) sector has contributed significantly to the economic growth in India and is one of the fastest-growing export-oriented sectors in India. The objective of this article is to explore the determinants of exports of IT companies of India from 2000 to 2012 using company-level data. Applying ordinary panel data regression, the article finds that world demand and real effective exchange rate have expected signs on company exports. Surprisingly, foreign capital, which played a crucial role in IT sector development in India, has a negative coefficient, highlighting substitution relation between export and domestic demands. The dynamic panel data regression exhibits persistence of exports which acts as a moderating factor on demand fluctuations and its high impact. Further, the dynamic panel estimations clearly show the predominant influence of past exports on gross domestic product (GDP) growth in India, which makes world demand, standardized as relative to Indiaâ€™s GDP, inconsequential for its future exports.
Keywords: Information technology; software export; FDI; research and development; ordinary panel regression; dynamic panel regression (search for similar items in EconPapers)
JEL-codes: F14 F18 L86 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
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:sae:soueco:v:16:y:2015:i:1:p:64-81
Access Statistics for this article
More articles in South Asia Economic Journal from Institute of Policy Studies of Sri Lanka
Bibliographic data for series maintained by SAGE Publications ().