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Self‐selection vs learning: evidence from Indian exporting firms

Author

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  • Priya Ranjan
  • Jibonayan Raychaudhuri

Abstract

Purpose - The purpose of this paper is to study whether exporting firms outperform non‐exporting firms along a number of performance characteristics. It also examines whether the differences in performance characteristics are due to the self‐selection of better firms into exporting or because the firms that start exporting for some unknown reason experience productivity growth. Design/methodology/approach - The dataset comprised a panel of Indian manufacturing firms for a period of 17 years from 1990 to 2006. Findings - Exporters were found to systematically outperform non‐exporters over a number of characteristics. Also, evidence was found of “self‐selection”, that is, firms that are more productive enter the export market. There was some evidence of learning, that is exporting firms experience an increase in productivity. Originality/value - This is the first paper to look at the issue of self‐selection vs learning for exporting firms using a dataset from India.

Suggested Citation

  • Priya Ranjan & Jibonayan Raychaudhuri, 2011. "Self‐selection vs learning: evidence from Indian exporting firms," Indian Growth and Development Review, Emerald Group Publishing Limited, vol. 4(1), pages 22-37, April.
    • Handle: RePEc:eme:igdrpp:v:4:y:2011:i:1:p:22-37
    DOI: 10.1108/17538251111124981
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    References listed on IDEAS

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    5. Vu, Van Huong, 2012. "Higher productivity in Exporters: self-selection, learning by exporting or both? Evidence from Vietnamese manufacturing SMEs," MPRA Paper 40708, University Library of Munich, Germany.
    6. Prajukta Tripathy & Pragyanrani Behera & Bikash Ranjan Mishra, 2023. "Study of linkages between productivity, export, and outward foreign direct investment: An empirical perspective of Indian manufacturing industries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1527-1548, April.
    7. Li Fang, 2018. "The Dual Effects of Information Technology Clusters: Learning and Selection," Economic Development Quarterly, , vol. 32(3), pages 195-209, August.
    8. Sharma, Chandan, 2018. "Exporting, access of foreign technology, and firms’ performance: Searching the link in Indian manufacturing," The Quarterly Review of Economics and Finance, Elsevier, vol. 68(C), pages 46-62.
    9. Bishwanath Goldar & Yashobanta Parida & Deepika Sehdev, 2017. "Reduction in Carbon Emissions Intensity and Impact on Export Competitiveness: Evidence from Indian Manufacturing Firms," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 8(02), pages 1-30, June.
    10. Bishwanath Goldar, 2023. "ICT Investment, Adoption of ISO 14000 Certification, and Export Performance in Indian Manufacturing Plants," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 21(3), pages 523-553, September.

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