Online from: 2008
Subject Area: Economics
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|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|
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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