Does Investing in Technology Affect Exports? Evidence from Indian Firms
The authors use firm-level data from Indian manufacturing industries to explore the determinants of exports, focusing on the role played by technology. The empirical analysis, which distinguishes between a firm's decision to export and the volume of its exports conditional on its having decided to export, reveals that investments in technology via R&D and technology transfer agreements can facilitate the entry of Indian firms into export markets. However, their influence on the volume of exports is fairly limited. Factors with a more broad-based influence on both export participation and volumes include labor intensity and, especially, firm size. Copyright Blackwell Publishing Ltd 2003.
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