Self‐selection vs learning: evidence from Indian exporting firms

Priya Ranjan (Department of Economics, University of California, Irvine, California, USA)
Jibonayan Raychaudhuri (Department of Economics, University of Essex, Colchester, UK)

Indian Growth and Development Review

ISSN: 1753-8254

Publication date: 19 April 2011

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.

Keywords

Citation

Ranjan, P. and Raychaudhuri, J. (2011), "Self‐selection vs learning: evidence from Indian exporting firms", Indian Growth and Development Review, Vol. 4 No. 1, pp. 22-37. https://doi.org/10.1108/17538251111124981

Download as .RIS

Publisher

:

Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

Please note you might not have access to this content

You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account.
If you would like to contact us about accessing this content, click the button and fill out the form.
To rent this content from Deepdyve, please click the button.