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R&D Activities and Export Performance of Indian Private Firms

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  • Lakshmi K. Raut

    (Cal State Fullerton)

Abstract

This paper formulates a model of optimal export decision of private firms and then empirically studies the effect of firm size, R&D activities and competitiveness on export performance of Indian private firms during the period 1975-1986. The paper argues that the Cragg model is more appropriate to model firms’ export behavior than the commonly used Tobit model. The evaluation of the export promotion and partial import liberalization policies of 1980 based on the Tobit model is found to be qualitatively quite different from the evaluation based on the Cragg model. The LR and LM specification tests reject the Tobit model against the Cragg model in all specifications.

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File URL: http://128.118.178.162/eps/it/papers/0307/0307002.pdf
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Bibliographic Info

Paper provided by EconWPA in its series International Trade with number 0307002.

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Length: 24 pages
Date of creation: 21 Jul 2003
Date of revision:
Handle: RePEc:wpa:wuwpit:0307002

Note: Type of Document - Microsoft Word; prepared on PC; to print on HP/PostScript/Franciscan monk; pages: 24 ; figures: included. We never published this piece and now we would like to reduce our mailing and xerox cost by posting it.
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Web page: http://128.118.178.162

Related research

Keywords: Exports; R&D; Price-Cost-Margin;

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  1. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning By Exporting Important? Micro-Dynamic Evidence From Colombia, Mexico, And Morocco," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 113(3), pages 903-947, August.
  2. Aitken, B. & Hanson, G.H. & Harrison, A.E., 1994. "Spillovers, Foreign Investment and Export Behavior," Papers 95-06, Columbia - Graduate School of Business.
  3. Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-64, September.
  4. Lin, Tsai-Fen & Schmidt, Peter, 1984. "A Test of the Tobit Specification against an Alternative Suggested by Cragg," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 174-77, February.
  5. Raut, Lakshmi K., 1995. "R & D spillover and productivity growth: Evidence from Indian private firms," Journal of Development Economics, Elsevier, vol. 48(1), pages 1-23, October.
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