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Link between Exporting and Productivity: Firm Level analysis for Indian Chemical Industry

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  • Vinish Kathuria

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  • Anaka Aiyar

    ()

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    Abstract

    The objective of the paper is to test the empirical regularity that exporters are more productive than non-exporters in India. TFP is calculated from the Cobb-Douglas Production function using a fixed effects model. The productivity differential comparison between exporters and non-exporters show that Non-exporters have a higher Total Factor Productivity than Exporters. URL: [ http://fgks.in/IndexServer/tifac/article/129.pdf].

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    Bibliographic Info

    Paper provided by eSocialSciences in its series Working Papers with number id:3794.

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    Date of creation: Mar 2011
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    Handle: RePEc:ess:wpaper:id:3794

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    Keywords: chemical industry; productivity; exporters; India; cobb-douglas; firm level; self-selection hypothesis; international contracts; commodities; domestic economy; foreign technology;

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    1. Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
    2. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
    3. Joachim Wagner, 2005. "Exports and Productivity: A survey of the evidence from firm level data," Working Paper Series in Economics 4, University of L√ľneburg, Institute of Economics.
    4. Sofronis Clerides & Saul Lach & James Tybout, 1996. "Is "Learning-by-Exporting" Important? Micro-Dynamic Evidence from Colombia, Mexico and Morocco," NBER Working Papers 5715, National Bureau of Economic Research, Inc.
    5. Vinish Kathuria, 2000. "Productivity spillovers from technology transfer to Indian manufacturing firms," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 343-369.
    6. Young, Alwyn, 1994. "Lessons from the East Asian NICS: A contrarian view," European Economic Review, Elsevier, vol. 38(3-4), pages 964-973, April.
    7. Bhagwati, Jagdish N, 1988. "Export-Promoting Trade Strategy: Issues and Evidence," World Bank Research Observer, World Bank Group, vol. 3(1), pages 27-57, January.
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