IDEAS home Printed from
   My bibliography  Save this article

Outward Orientation, Investment and Finance Constraints: A Study of Indian Firms


  • A. Ganesh-Kumar
  • K. Sen
  • R. Vaidya


We investigate the presence of finance constraints on firms' investment behaviour using Indian manufacturing as a case study. This question becomes particularly interesting in the post-1991 period when substantial market oriented reforms were undertaken. We argue that in the Indian institutional context (especially, the underdeveloped state of bankruptcy laws and restrictive exit procedures) outward orientation rather than size is the relevant criteria for distinguishing firms that may be 'finance-constrained' from those that are not. Using panel data for 718 Indian manufacturing firms for the period 1993-98, we find that exporting firms are less constrained in financial markets than firms which sell primarily to domestic markets.

Suggested Citation

  • A. Ganesh-Kumar & K. Sen & R. Vaidya, 2001. "Outward Orientation, Investment and Finance Constraints: A Study of Indian Firms," Journal of Development Studies, Taylor & Francis Journals, vol. 37(4), pages 133-149.
  • Handle: RePEc:taf:jdevst:v:37:y:2001:i:4:p:133-149
    DOI: 10.1080/00220380412331322071

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jdevst:v:37:y:2001:i:4:p:133-149. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.