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R&D Activities and Export Performance of Indian Private Firms

  • Lakshmi K. Raut

    (Cal State Fullerton)

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.

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File URL: http://128.118.178.162/eps/it/papers/0307/0307002.pdf
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Paper provided by EconWPA in its series International Trade with number 0307002.

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Length: 24 pages
Date of creation: 21 Jul 2003
Date of revision:
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.
Contact details of provider: Web page: http://128.118.178.162

References listed on IDEAS
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  1. Sofronis Clerides & Saul Lach & James Tybout, 1996. "Is "learning-by-exporting" important? Micro-dynamic evidence from Colombia, Mexico and Morocco," Finance and Economics Discussion Series 96-30, Board of Governors of the Federal Reserve System (U.S.).
  2. 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.
  3. 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.
  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 174-77, 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 545-64, September.
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