Nexus between export, productivity, and competitiveness in the Indian manufacturing sector

This article assesses the nexus between export, productivity, and competitiveness in the Indian manufacturing sector. To do this, we examine the learning by exporting and self-selection hypotheses using firm-level data relating to Indian manufacturing firms relating to period from 1994 to 2017. The empirical analysis supports the learning by exporting hypothesis, but does not support the self-selection hypothesis. We also investigate the impact of export on competitiveness, and the results indicate a positive relationship. These findings remain consistent when we segregate manufacturing firms based on industries, intensity use of labor and capital, and firm ownership. In the light of these findings, we recommend that policy focus on enhancing the export capacity of manufacturing firms to further strengthen the competitiveness of Indian manufacturing.

Automated summary

This article assesses the nexus between export, productivity, and competitiveness in the Indian manufacturing sector. The learning by exporting hypothesis is supported, while the self-selection hypothesis is not. The impact of export on competitiveness is found to be positive. These findings remain consistent across different industries, labor and capital intensity, and firm ownership.