Domestic Competition Spurs Exports: The Indian Example

Poddar, Tushar

doi:10.5089/9781451858662.001

Cited by 9 publications

(11 citation statements)

References 24 publications

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“…Among other things that can influence domestic firms’ decision to enter the export market or to increase their export intensity is product market competition. Greenaway, Sousa, and Wakelin () and Poddar () show that domestic firms can become more competitive through competition posed by multinational firms and also spillovers emanting from these firms. They further argue that the presence of the multinational firms stimulates competition among even local firms, and this complements their innovative activities that propels them to venture into export markets.…”

Section: Literature Reviewmentioning

confidence: 99%

Reaching up and reaching out: The impact of competition on firms’ productivity and export decisions

Yan

Hynes

2018

Pacific Economic Review

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Using firm‐level data from 139 countries, this paper investigates the effect of competition in both the domestic and foreign markets on firm productivity and export decisions. Applying a sample selection endogenous treatment (SSET) Poisson model that tackles both the issue of endogenous sample selection and endogenous treatment at the same time, we document robust evidence that strong competition in the domestic market propels firms to be more productive, and decreasing domestic competition increases firms’ propensity to export. However, firms’ export intensity (i.e. how much they export) is not directly influenced by competition in the domestic market. Moreover, lower competition in the foreign market increases the propensity of domestic firms to export, enlarging the set of exporting firms to include firms with relatively smaller export amounts.

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Section: Literature Reviewmentioning

confidence: 99%

Reaching up and reaching out: The impact of competition on firms’ productivity and export decisions

Yan

Hynes

2018

Pacific Economic Review

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“…Some or all of these factors motivated Indian MNEs to venture abroad in their pursuit of OFDI (Accenture 2006). Poddar (2004) has argued that the foreign MNEs that have been engaged in FDI into India with an export motive, rather than a local market accessseeking motive, have, over time, generated information and technological spillovers. These spillovers have helped Indian firms develop their export potential by acquiring knowledge of foreign markets, distribution channels, and international marketing skills.…”

Section: B Attitudinal or Behavioral Change Among Indian Firmsmentioning

confidence: 99%

The Rise of Indian Multinationals

Hansen¹

2010

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“…Carlin and Soskice [56] also inserted a measure of competitiveness into the export equation. In this line, the degree of competition in industry affects export performance of firms too thereby that the more competitive market structure, the more export takes place [57] [58]. Moreover, on the basis of human capital and firm theory, education of employees (labors and managers) also influences export.…”

Section: Empirical Model and Datamentioning

confidence: 99%

Educational Levels and Export Performance of Iranian Industries

Mehrbani¹

2018

TEL

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This paper examines a composite implication of human capital theory and knowledge-based economy literature with regard to export performance of Iranian industries. It is expected that education particularly in higher levels contributes to the expansion of export. This is the hypothesis that is tested by underlying the Branson's export function and using a panel data of industries with two-digit codes in 2003-2013. Results show that education only in MA (MS) and PhD levels has positive and significant effect on export but lower levels of education have no effect. The coefficients indicate that a 1 percent increase in completion of MA (MS) and PhD degrees will increase the export of industry by 0.18 (0.15) percent respectively. It seems that education contributes to export in higher levels but has no important role in lower levels. It is indicated that the results are somewhat in contrast to filter theory proposed by Arrow (1973).

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Domestic Competition Spurs Exports: The Indian Example

Abstract: This Working Paper should not be reported as representing the views of the IMF.

Cited by 9 publications

References 24 publications

Reaching up and reaching out: The impact of competition on firms’ productivity and export decisions

Reaching up and reaching out: The impact of competition on firms’ productivity and export decisions

The Rise of Indian Multinationals

Educational Levels and Export Performance of Iranian Industries

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