2017/09 | LEM Working Paper Series | ||||||||||||||||
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Efficiency, innovation, and imported inputs: determinants of export performance among Indian manufacturing firms |
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Marco Grazzi, Nanditha Mathew and Daniele Moschella |
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Keywords | |||||||||||||||||
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Export behavior, Innovation, Imported Inputs, Trade policy, India
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JEL Classifications | |||||||||||||||||
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D22, F13, F14, L25, O33
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Abstract | |||||||||||||||||
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This paper investigates the determinants of export behavior among
Indian manufacturing firms, focusing in particular on the role of
technology, cost and imported intermediate inputs. Our evidence
suggests that innovation, in particular R&D, positively affects both
firms’ probability to export and firms’ export volumes. We also find
that imported intermediate inputs, incorporating foreign technology,
play an important role in expanding export activities of firms. On the
other hand, we find that higher productivity or lower unit labour
costs are not systematically associated with the probability to enter
export market, but they do positively affect export volumes.
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