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Indian Growth and Development Review
ISSN: 1753-8254
Online from: 2008
Subject Area: Economics
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Self-selection vs learning: evidence from Indian exporting firms
| Title: | Self-selection vs learning: evidence from Indian exporting firms |
|---|---|
| Author(s): | Priya Ranjan, (Department of Economics, University of California, Irvine, California, USA), Jibonayan Raychaudhuri, (Department of Economics, University of Essex, Colchester, UK) |
| Citation: | Priya Ranjan, Jibonayan Raychaudhuri, (2011) "Self-selection vs learning: evidence from Indian exporting firms", Indian Growth and Development Review, Vol. 4 Iss: 1, pp.22 - 37 |
| Keywords: | Exports, India, Manufacturing industry, Productivity rate |
| Article type: | Research paper |
| DOI: | 10.1108/17538251111124981 (Permanent URL) |
| Publisher: | Emerald Group Publishing Limited |
| Abstract: | Purpose – The purpose of this paper is to study whether exporting firms outperform non-exporting firms along a number of performance characteristics. It also examines whether the differences in performance characteristics are due to the self-selection of better firms into exporting or because the firms that start exporting for some unknown reason experience productivity growth. Design/methodology/approach – The dataset comprised a panel of Indian manufacturing firms for a period of 17 years from 1990 to 2006. Findings – Exporters were found to systematically outperform non-exporters over a number of characteristics. Also, evidence was found of “self-selection”, that is, firms that are more productive enter the export market. There was some evidence of learning, that is exporting firms experience an increase in productivity. Originality/value – This is the first paper to look at the issue of self-selection vs learning for exporting firms using a dataset from India. |
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