Foreign ownership and export performance in the large corporate sector of India

Abstract

This paper examines the impact of foreign ownership on export performance by the largest corporate firms in India, to analyse whether the ‘monopolistic advantages’ of multinationals survive in its highly restrictive and regulated environment. After controlling for industrial characteristics and export incentives, foreign ownership has a positive impact on export performance. The statistical significance of the result is not very strong, but the finding counters earlier works based on simple comparisons of exports at the firm level. The analysis also sheds light on other influences of policy significance on export performance.

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