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Competitiveness, Productivity and Export Performance of Indian private firms


  • Raut, Lakshmi K.



This paper formulates a model of optimal export decision of private firms and then empirically studies the effect of firm size, import of raw materials and capital goods, competitiveness (measured in terms of price-cost-margin (PCM)), and productivity growth on export performance of Indian private firms during the period 1975-1986. The paper finds that while competitiveness, and value-added growth improved in all industries, the export performance and productivity growth improved only in a few industries. Furthermore, while import of capital goods and raw materials had significantly positive effects on exports in almost all industries, competitiveness had significant positive effect only in the lighter industries (food and beverages, and textiles), productivity growth did not have significant positive effect in any industry, and firm size had significant positive effect on exports only in petro-chemical industry for firms of size higher than a threshold level.

Suggested Citation

  • Raut, Lakshmi K., 2003. "Competitiveness, Productivity and Export Performance of Indian private firms," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 3(3).
  • Handle: RePEc:eaa:aeinde:v:3:y:2003:i:3_14

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    References listed on IDEAS

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    Cited by:

    1. T.N. Srinivasan & Vani Archana, 2011. "Determinants of Export Decision of Indian Firms: A Primary Data Analysis," Journal of Quantitative Economics, The Indian Econometric Society, vol. 9(2), pages 6-35, July.

    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms


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