DETERMINANTS OF FIRM-LEVEL EXPORT PERFORMANCE: A CASE STUDY INDIAN TEXTILE GARMENTS AND APPAREL INDUSTRY

T.A. Bhavani and Suresh D. Tendulkar
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T.A. Bhavani: Delhi School of Economics
Suresh D. Tendulkar: Delhi School of Economics

No 58, Working papers from Centre for Development Economics, Delhi School of Economics

Abstract: This study uses the Censored Regression (Tobit) Model to identify the firm-level determinants of exports of Textile Garments and Apparel by modem small scale industrial units located in Delhi, India and surveyed as part of the census of such units carried out during 1987-88. Scale of operation, technical efficiency, share of wages and sales expenses and forms of business organisation have been found to govern the firm-level export performance. The findings strongly suggest two major changes in the existing government policy for improving export performance, namely, abolition of reservation of products for exclusive production in small-scale units and appropriate amendments in labour legislation to introduce labour market flexibility.

Pages: 41 pages
Date: 1998-05
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