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Effects of exports on productivity and growth in India: an industry-based analysis

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  • Tarlok Singh

Abstract

This study analyses the effects of exports on the level of output per capita using the panel estimates of an extended version of the Mankiw, Romer and Weil (The Quarterly Journal of Economics, CVII, 407-37, 1992) model, and on the total factor productivity using the time series estimators. The analysis is carried out for ten industries in the manufacturing sector in India. The results do not provide any evidence of convergence, and instead support the contrary evidence of divergence among industries. The exports do not induce convergence and instead seem to accentuate the process of divergence among industries. The study provides some evidence for the significant effects of exports on the level of output per capita and TFP in the manufacturing sector. The effects of exports on TFP are significant in half of the sample industries, while in the remaining half these are statistically insignificant.

Suggested Citation

  • Tarlok Singh, 2003. "Effects of exports on productivity and growth in India: an industry-based analysis," Applied Economics, Taylor & Francis Journals, vol. 35(7), pages 741-749.
  • Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:741-749
    DOI: 10.1080/00036840210139337
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    References listed on IDEAS

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    1. Alwyn Young, 1994. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience," NBER Working Papers 4680, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Marie-Ange VEGANZONES-VAROUDAKIS & Arup MITRA & Chandan SHARMA, 2012. "Are reforms productive? Explaining productivity and efficiency in the Indian manufacturing," Working Papers 201233, CERDI.
    2. Tarlok Singh, 2010. "Does International Trade Cause Economic Growth? A Survey," The World Economy, Wiley Blackwell, vol. 33(11), pages 1517-1564, November.
    3. Mitra, Arup & Sharma, Chandan & Véganzonès-Varoudakis, Marie-Ange, 2014. "Trade liberalization, technology transfer, and firms’ productive performance: The case of Indian manufacturing," Journal of Asian Economics, Elsevier, vol. 33(C), pages 1-15.
    4. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, Elsevier.

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