Publication

This paper uses firm-level data from Indian manufacturing industries to explore the determinants of exports, focusing on the role of technology. The empirical analysis reveals that technology related activities can play a useful role in assisting firms to enter export markets. More important determinants however are firm size and labor intensity. The authors criticize the Indian government’s policy of restricting certain labor-intensive trades to small-scale production. They claim that this does not allow labor-abundant India to use its comparative advantage, given large firms face advantages on export markets.