Domestic Competition Spurs Exports : The Indian Example

Author/Editor:

Tushar Poddar

Publication Date:

September 1, 2004

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

India's exports nearly tripled in the 1990s. Decomposing export growth shows that it has been driven by incumbent firms rather than the entry of new firms. By using a new panel on Indian firms and estimating a dynamic discrete-choice model of the firm's decision to export, we find evidence that economic liberalization has led to greater domestic competition, spurring firm efficiency and increasing Indian firms' competitiveness and ability to export. We show that export growth has been an outcome of local firm innovation which has come about due to increased competitive pressure from FDI entry.

Series:

Working Paper No. 04/173

Subject:

English

Publication Date:

September 1, 2004

ISBN/ISSN:

9781451858662/1018-5941

Stock No:

WPIEA1732004

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

29

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