International Competitiveness, Investment and Finance: A Case Study of India

By A. Ganesh-Kumar; Kunal Sen et al. | Go to book overview

5

Outward orientation

A firm-level analysis

In this chapter we conduct an analysis of export competitiveness at the firm level. Prior to conducting the analysis, it is necessary to ask what would be the relevant definition of 'export competitiveness' (or equivalently, 'international competitiveness') at the level of the firm. As we have seen in the previous chapter, 'international competitiveness' for an industry is conventionally defined to be the share of the industry's product in the total world exports of that product. Clearly, such a definition is not meaningful at the firm level as the use of world total exports as the denominator for calculating the firm's export share would yield quite insensible results. A more feasible definition is to calculate the firm's export share using total exports of the industry in which the firm is located in as the appropriate denominator. However, such a measure may provide biased estimates of the firm's export competitiveness if the firm is gaining export share in an industry which itself is losing export markets. In this case, it is debatable whether the increase in the share of the firm in total industry exports can be termed as an increase in the firm's export competitiveness. Rather than defining export competitiveness as a gain in export shares, we take the very act of exporting by a firm as a measure of the firm's ability to compete in export markets. That is, we take the firm's export status as a measure of the firm's export competitiveness.

The focus on the firm's export status as a measure of 'outward orientation' is consistent with the arguments presented in Chapter 1 that sunk entry costs are a significant feature of export markets. If this is the case then, the act of exporting can be seen as a signal by the firm that it is confident it will be able to compete effectively in international markets as it is willing to pay these initial non-recoverable costs in return for future expected profits from exporting. In this chapter, we first attempt to understand whether there are systematic differences between exporting and non-exporting firms using a sample of 672 Indian manufacturing firms for the period 1992-93 to 1997-98. This we do by presenting several empirical regularities with

-63-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
International Competitiveness, Investment and Finance: A Case Study of India
Table of contents

Table of contents

  • Title Page v
  • Contents ix
  • Figures xi
  • Tables xii
  • Preface xv
  • 1 - Competitiveness, Investment and Finance 1
  • 2 - The Policy Environment in India 12
  • 3 - The Balance of Payments and National Competitiveness 27
  • 4 - The Determinants of Sectoral Competitiveness 51
  • 5 - Outward Orientation 63
  • 6 - Finance Constraints, Persistent Exporting and Investment 93
  • 7 - Conclusions and Policy Implications 115
  • Appendix 123
  • Notes 146
  • References 151
  • Index 157
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 162

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.