Nexus between export, productivity, and competitiveness in the Indian manufacturing sector

Sahoo, Pradipta Kumar and Rath, Badri Narayan and Le, Viet (2022) Nexus between export, productivity, and competitiveness in the Indian manufacturing sector. Journal of Asian Economics, 79. pp. 1-13. ISSN 1049-0078

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Abstract

This article assesses the nexus between export, productivity, and competitiveness in the Indian manufacturing sector. To do this, we examine the “learning by exporting” and “self-selection” hypotheses using firm-level data relating to Indian manufacturing firms relating to period from 1994 to 2017. The empirical analysis supports the “learning by exporting” hypothesis, but does not support the “self-selection” hypothesis. We also investigate the impact of export on competitiveness, and the results indicate a positive relationship. These findings remain consistent when we segregate manufacturing firms based on industries, intensity use of labor and capital, and firm ownership. In the light of these findings, we recommend that policy focus on enhancing the export capacity of manufacturing firms to further strengthen the competitiveness of Indian manufacturing. © 2022 Elsevier Inc.

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