Export Decision and Export Performance of Manufacturing Firms an Experience from Indian Organized Sector

Paramita Roy Biswas and Simontini Das ()
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Paramita Roy Biswas: Victoria Institution (College)
Simontini Das: Jadavpur University

A chapter in Risks and Resilience of Emerging Economies, 2023, pp 131-150 from Springer

Abstract: Abstract The present paper investigates into the firm-level heterogeneity and its impact on export performances. There are three major hypotheses in the existing literature on the export performance: hypothesis of self-selection theory, hypothesis of learning-by-exporting theory and sunk cost hysteresis hypothesis. The present cross-sectional study uses ASI unit level data for 2011–12 across 30 states and sixty six manufacturing industries. Here 11,188 firms are considered for the analysis. The study estimated a Heckman Selection model to identify the determinants of export decision (the selection equation) as well as the level of export to gross output (outcome equation). The firm-level heterogeneity can be explained in terms of technical efficiency, spatial location, ownership pattern, technological advancement, quality standard, and skill intensity. Firm-level technical efficiency is estimated using Stochastic Frontier Analysis. Ownership pattern has diverging impacts on export decision and export performances across the manufacturing units. Technical efficiency, standardization of quality, transfer of sophisticated technology in terms of usage of imported input, and urban location improve the export performance of the manufacturing unit.

Keywords: Export performance; Technical efficiency; Heckman-selection model; F14; D22; C01 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:isbchp:978-981-99-4063-9_7

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DOI: 10.1007/978-981-99-4063-9_7

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