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R&D Activities and Export Performance of Indian Private Firms

Author

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  • Lakshmi K. Raut

    (Cal State Fullerton)

Abstract

This paper formulates a model of optimal export decision of private firms and then empirically studies the effect of firm size, R&D activities and competitiveness on export performance of Indian private firms during the period 1975-1986. The paper argues that the Cragg model is more appropriate to model firms’ export behavior than the commonly used Tobit model. The evaluation of the export promotion and partial import liberalization policies of 1980 based on the Tobit model is found to be qualitatively quite different from the evaluation based on the Cragg model. The LR and LM specification tests reject the Tobit model against the Cragg model in all specifications.

Suggested Citation

  • Lakshmi K. Raut, 2003. "R&D Activities and Export Performance of Indian Private Firms," International Trade 0307002, EconWPA.
  • Handle: RePEc:wpa:wuwpit:0307002
    Note: Type of Document - Microsoft Word; prepared on PC; to print on HP/PostScript/Franciscan monk; pages: 24 ; figures: included. We never published this piece and now we would like to reduce our mailing and xerox cost by posting it.
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/it/papers/0307/0307002.pdf
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    References listed on IDEAS

    as
    1. Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997. "Spillovers, foreign investment, and export behavior," Journal of International Economics, Elsevier, vol. 43(1-2), pages 103-132, August.
    2. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 903-947.
    3. Raut, Lakshmi K., 1995. "R & D spillover and productivity growth: Evidence from Indian private firms," Journal of Development Economics, Elsevier, vol. 48(1), pages 1-23, October.
    4. Lin, Tsai-Fen & Schmidt, Peter, 1984. "A Test of the Tobit Specification against an Alternative Suggested by Cragg," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 174-177, February.
    5. Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-564, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Exports; R&D; Price-Cost-Margin;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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