Self‐selection vs learning: evidence from Indian exporting firms

Self‐selection vs learning: evidence from Indian exporting firms 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Indian Growth and Development Review Emerald Publishing

Self‐selection vs learning: evidence from Indian exporting firms

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Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1753-8254
DOI
10.1108/17538251111124981
Publisher site
See Article on Publisher Site

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.

Journal

Indian Growth and Development ReviewEmerald Publishing

Published: Apr 19, 2011

Keywords: India; Manufacturing industry; Exports; Productivity rate

References

  • Plants and productivity in international trade
    Bernard, A.B.; Eaton, J.; Jensen, J.B.; Kortum, S.S.
  • Does exporting increase productivity? A microeconometric analysis of matched firms
    Girma, S.; Greenaway, D.; Kneller, R.
  • Total factor productivity estimation: a practical review
    Van Beveren, I.

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