Determinants of Export Performance: New Evidence from Indian Industries

Exploring determinants of export performance is one of the most extensively investigated areas of international business. Researchers in India and abroad have investigated different firm characteristics that influence export performance of firms. The focus of this paper is to examine the determinants of export performance of Indian industries using panel data. The study presents an analysis of 171 Indian firms belonging to fourteen different industries listed in the CMIE-Prowess database for the period 2005-2012. The study highlights the differences in the export performance of high, medium-high, medium-low and low technology intensive industries based on OECD (Organisation for Economic Co-operation and Development) technology classification of industries. The analysis is presented using multiple regression method with export intensity as the dependent variable and seven other firm characteristics (research&development intensity, size of the firm, advertising intensity, capital intensity, profitability intensity, debt-equity ratio and technology) as independent variables. Advertising intensity and capital intensity are found to have a significant impact on export performance of firms in seven industries each. Debt-equity exhibited a significant impact on export performance in six industries. Technology and size of the firm have shown an influence on five industries while research&development intensity, and profitability intensity had a significant impact on export performance of three industries each.