Domestic Competition Spurs Exports: The Indian Example

 
Author/Editor: Poddar, Tushar
 
Publication Date: September 01, 2004
 
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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(s): Competition | Exports | India | Trade | Economic models

Author's Keyword(s): India | FDI | Exports | Competition
 
English
Publication Date: September 01, 2004
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA1732004 Pages: 28
Price:
US$15.00 (Academic Rate:
US$15.00 )
 
 
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