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Firm-Level Productivity and Exports: The Case of Manufacturing Sector in India

In: Accelerators of India's Growth—Industry, Trade and Employment

Author

Listed:
  • K. Narayanan

    (Indian Institute of Technology Bombay)

  • Santosh Kumar Sahu

    (Indian Institute of Technology Madras)

Abstract

This study differentiates total factor productivity (TFP) between the exporting and non-exporting firms in manufacturing sector of India. We use data from the Centre for Monitoring Indian Economy (CMIE) from 2003 to 2015. For a better understanding of the productivity distribution, we create two subgroups of sample based on firm age and size. Moving away from parametric tests this study adopts non-parametric statistics in testing the hypothesis. Productivity levels are found to be higher for the exporting firms as compared to the non-exporting firm. Further, within the exporting firms, those with larger firm size have higher productivity compared to the smaller firms.

Suggested Citation

  • K. Narayanan & Santosh Kumar Sahu, 2020. "Firm-Level Productivity and Exports: The Case of Manufacturing Sector in India," India Studies in Business and Economics, in: Suresh Chand Aggarwal & Deb Kusum Das & Rashmi Banga (ed.), Accelerators of India's Growth—Industry, Trade and Employment, pages 159-175, Springer.
    • Handle: RePEc:spr:isbchp:978-981-32-9397-7_8
    DOI: 10.1007/978-981-32-9397-7_8
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    More about this item

    Keywords

    TFP; Exports; Non-parametric tests; Manufacturing sector; India;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F10 - International Economics - - Trade - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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