Productivity and learning-by-exporting: a firm-level analysis of Indian manufacturing

Abstract

<jats:title>Abstract</jats:title><jats:p>In this paper, we examine whether firms become productive by learning through exporting. To this end, we estimate the production function using microdata of <jats:styled-content style="fixed-case">I</jats:styled-content>ndian manufacturing firms operating in the period 1991–2001. In contrast to studies on developed countries, our results provide evidence that <jats:styled-content style="fixed-case">I</jats:styled-content>ndian manufacturing firms are experiencing a rise in productivity through entering export markets and thus experience the learning effect. We also find that there is a productivity rise prior to exporting. Therefore, our results also support the self‐selection mechanism for exporting.</jats:p>