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Strengthening the Export Competitiveness of firms in the Indian Pharmaceutical Industry


  • Aradhna Aggarwal



This paper attempts to identify the factors that determine the export competitiveness of firms in the Indian pharmaceutical industry. Our findings suggest that the competitiveness of firms depends not only on firm specific advantages but also on government fiscal incentives. Among the firm specific factors, own R&D efforts emerged as one of the prime factors influencing export competitiveness. Furthermore, R&D efforts involved in the modification in process technology were more relevant than the introduction of new products, reflecting the importance of the pursuit of improvement in processes in the industry’s technological trajectory. The paper argues that the government should focus on ruthless export promotion in the TRIPs driven environment.

Suggested Citation

  • Aradhna Aggarwal, 2006. "Strengthening the Export Competitiveness of firms in the Indian Pharmaceutical Industry," Working Papers id:487, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:487
    Note: Institutional Papers

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    References listed on IDEAS

    1. Richard Baldwin & Paul Krugman, 1989. "Persistent Trade Effects of Large Exchange Rate Shocks," The Quarterly Journal of Economics, Oxford University Press, vol. 104(4), pages 635-654.
    2. Dixit, Avinash K, 1989. "Entry and Exit Decisions under Uncertainty," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 620-638, June.
    3. Deb Kusum Das, 2003. "Quantifing trade barriers: Has protection declined substantially in Indian manufacturing?," Indian Council for Research on International Economic Relations, New Delhi Working Papers 105, Indian Council for Research on International Economic Relations, New Delhi, India.
    4. Andrea Bonaccorsi, 1992. "On the Relationship Between Firm Size and Export Intensity," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(4), pages 605-635, December.
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