Does Investing in Technology Affect Exports? Evidence from Indian Firms (original) (raw)
Related papers
Technology intensity of Indian merchandise exports
2009
In the light of substantive improvement in the India's export performance, this paper examines whether our exports have diversified to more technology intensive products. The analysis is focused mainly on merchandise export of India in the post liberalised period. The classification of merchandise export according to their technology intensity is based on OECD classification for the same. The analysis is done at 2-digit level for all commodities and at 3-digit level for some selected commodities. The study reveals that, India's Export is dominated by medium-low technology intensive commodities. Export of low technology intensive is still prominent, while medium-high technology is showing signs of improvement, especially in recent periods. India has still to go long way, before making a mark in export of high technology intensive commodities.
The Quarterly Review of Economics and Finance, 2018
This study tests the impact of export and foreign technology on the indicators of firm's performance for a sample of Indian manufacturing firms. To provide new insights into the debate over the linkage among export, technology, and performance, we employ several important performance indicators of firms, such as labor productivity, total factor productivity, product and process innovation, wage, size, and capacity utilization. For this study, we utilize a sample of firms from a recent Enterprise Surveys data of the World Bank on Indian manufacturing. The results of the analysis indicate that exporters are more productive and innovative. They are also large and utilize the capacity in a better way. The results further indicate that export leads to substantial performance gain for Indian firms. Similar results are also estimated for the effects of the use of foreign technology in the production process. Our findings also suggest that exporting products to the developed world have a significant effect on performance and further indicate that single product firms are more benefited from export and technology transfer than multi-product firms. It is also found that firms with more productivity decide to export their products; however, technology transfer is not a significant factor in making decisions about export or enhancing export-intensity. Overall, our analysis supports the argument that research and development (R&D) in the developed countries is an important source of technology for developing countries, and this takes place through export as well as direct technology transfer.
Competitiveness, FDI and Technological Activity in East Asia
Research Policy, 2004
A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data Competitiveness, FDI and technological activity in East Asia / edited by Sanjaya Lall and Shujiro Urata. p.cm. "In association with thelnternational Bank for Reconstruction and Developmentffhe World Bank." Includes index. 1. Research. Industrial-Economic aspects-East Asia. 2. Technological innovations-Economic aspects-East Asia. 3. Investments, Foreign-East Asia. 4.
Социология Науки И Технологий, 2011
Contemporary trade theories suggest association between technological capability and gains from export. Export structure of India and China with reference to the structure of US import suggests that higher Chinese gains cannot be explained by technological capability. When overall movement of US import is compared with that of shares of India and China, it appears that they have better share of the market during downswing. The trend is most pronounced in case of China. The paper off ers an explanation to the paradox by defi ning X-advantage that gives a country the advantage of downwardly fl exible factor price.
The pattern of India's share of high and medium technology exports in total manufactured exports doesn't get reflected in worldexports of technology intensive exports.In this paper, by taking threesectors belonging to different technology-intensive categories (textiles, apparels & footwear, electronics & computer and motor vehicles),with increase in India's participation in Global Value Chain (GVC), the gross exports of these sectorshave increased but the ratio of backward participation to forward participation has also increased. However, when gross exports are further divided into intermediate and final goods, thecorrelationof theseexports with the ratio of Foreign Value Added (FVA) to Domestic Value Added (DVA) for the sectors concerned, comes out significantly negative. Thus, how much increase in domestic value addition can enable in further increase in exports and how India is able to leverage its participation in GVCs to become more efficient by maximising the income and benefits is the question which needs further analysis.
Export Innovation System: Changing Structure of India's Technology Intensive Export
This paper attempts to analyse India's changing structure of technology-intensive exports using a systemic perspective. In doing so, it explores the increasing significance of linkages between National and International System of Innovation. Technology-intensive exports from the developing economies have witnessed rapid growth and an increase in their share compared with low-tech or medium tech exports in international trade in the last two decades. India is no exception to this and has demonstrated a sharp increase in the manufactured exports of technology-intensive products. The paper examines the changing structure of exports and its link with economic development and whether technological learning affects low, medium and high-tech differently. Findings reveal that export performance can be enhanced through improving technological capabilities. However, it is not only codified knowledge in R&D output such as publications, patents and designs that influence technological learning and innovation process. Interactive processes of international collaboration, inward and outward foreign direct investments also contribute significantly towards this process.