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Technological Efforts, Firm Size and Exports in the Basic Chemical Industry in India

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  • Savita Bhat
  • K. Narayanan

Abstract

This paper attempts to examine the role of technological efforts and firm size in determining the export behaviour of firms belonging to the basic chemical industry in India. The basic chemical industry is an important industry that provides intermediate chemicals to firms operating in diverse industries in both India and abroad. In this study technological efforts have been considered in terms of in-house R&D, import of embodied technology, and import of disembodied technology. Three different econometric models, namely, the Tobit, the two-part (Probit + Truncation) and the sample selection (Heckman), have been used for estimation and the results have been compared. The authors find evidence in support of the view that export behaviour of the firm can be modelled in a more appropriate manner using a two-part or a sample selection model rather than the popular Tobit model. The results of the econometric exercise confirm that technological efforts, firm size and other firm-specific characteristics are important in explaining the export behaviour of the firms.

Suggested Citation

  • Savita Bhat & K. Narayanan, 2009. "Technological Efforts, Firm Size and Exports in the Basic Chemical Industry in India," Oxford Development Studies, Taylor & Francis Journals, vol. 37(2), pages 145-169.
  • Handle: RePEc:taf:oxdevs:v:37:y:2009:i:2:p:145-169
    DOI: 10.1080/13600810902859528
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    Citations

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    Cited by:

    1. Chiara Franco & Subash Sasidharan, 2009. "MNEs and Export Spillovers: An Analysis of Indian Manufacturing Industries," Working Papers 2009-049, Madras School of Economics,Chennai,India.
    2. repec:spr:jqecon:v:15:y:2017:i:2:d:10.1007_s40953-016-0056-1 is not listed on IDEAS
    3. Franco, Chiara & Sasidharan, Subash, 2010. "MNEs, technological efforts and channels of export spillover: An analysis of Indian manufacturing industries," Economic Systems, Elsevier, vol. 34(3), pages 270-288, September.
    4. Pramod Kumar Naik, 2014. "R&D Intensity and Market Valuation of Firm: A Study of R&D Incurring Manufacturing Firms in India," Journal of Studies in Dynamics and Change (JSDC), ISSN: 2348-7038, JSDC Lokkatha Debate on Development, vol. 1(7), pages 295-308., November.
    5. Keshari, Pradeep Kumar, 2012. "FDI and firm level export competitiveness in the Indian machinery industry," MPRA Paper 47069, University Library of Munich, Germany.

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