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Does it pay to venture abroad? Exporting behavior and the performance of firms in Indian industry

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Author Info
Pradeep K. Chhibber (Department of Political Science, University of Michigan, Ann Arbor, MI 48109, USA)
Sumit K. Majumdar (University of Michigan Business School, Ann Arbor, MI 48109, USA)

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Abstract

Using contemporary data for a firm-level sample of over 600 Indian firms, this paper investigates the impact that an export-orientation has on the profitability of the firms studied. The results, based on a two-stage least squares method, establish a positive and significant relationship between firms' levels of exports and profitability. For firms from developing and transition economies like India it does pay to venture abroad, and the ability to sell goods overseas has a significant impact on firms' economic performance. © 1998 John Wiley & Sons, Ltd.

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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

Volume (Year): 19 (1998)
Issue (Month): 2 ()
Pages: 121-126
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Handle: RePEc:wly:mgtdec:v:19:y:1998:i:2:p:121-126

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976

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  1. Natália Barbosa & Helen Louri, 2003. "Corporate performance: does ownership matter? A comparison of foreign - and domestic - owned firms in Greece and Portugal," Working Papers 26, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho. [Downloadable!]
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