IT-ITeS sector's export performance - A comparative study using regression

Abstract

Exports in IT-ITeS industry is one of the significant contributors in the total service exports of India. Firm characteristics, ownership structure and industry characteristics significantly impact the export performance of Indian service firms. Two models, namely, pooled OLS regression and two-way Random Effect Model (REM) are employed to identify the difference between export the performance of the IT-ITeS industry and other service industries. It was found that the earnings through the export of IT-ITeS industries, is higher than that observed in other service industries. Also, the model is used to identify the effect of firm characteristics on export earnings. Furthermore, it was found that export behavior varies across different ownership groups. Keywords-IT-ITeS; ownership structure; exports; two-way Random Effect Model; Pooled OLS; service industryI.