Determinants of Export Performance of Indian Firms – A Strategic Perspective

Abstract

Macroeconomic policy reforms initiated in India since 1991 have brought about a significant improvement in the export performance of Indian firms. This paper examines the export performance of firms with the help of balance sheet data of 557 firms for the years 1980-81 to 1995-96. Applying panel Tobit model, it explains the improved export performance through changes in various firm level variables as well as economic environmental factors derived from existing literature on experiences of different countries. The paper also draws certain strategic and policy implications likely to be relevant for emerging economies from its findings on India.

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