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Determinant Factors of Export Intensity on Indian Textiles


Affiliations
1 Centre for Economic and Social Studies (CESS), Hyderabad – 500016, Telangana, India
     

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With the end of ATC Act (1995) in 2005, the industry went through a phase of reforms, to integrate with global market. This paper uses data of 1591 firms obtained from Prowess (CMIE) for the period 2002 - 17 to examine the determinants relating to exports in Indian Textile industry. Variables estimation is carried under both ‘Fixed and Random’ effect specifications and propose a Hausman test which compares these two model accountings for disturbances. ‘Foreign earnings’, R&D intensity & Capital intensity are found to be major factors for a firm to invest in technology, plant and machinery to increase exports of goods and total revenue of the firm.

Keywords

Export Intensity, Hausman Test, Longitudinal Panel Data, Random Effects Estimator, Technology, R&D.
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  • Determinant Factors of Export Intensity on Indian Textiles

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Authors

M. Jyothsna Varsha
Centre for Economic and Social Studies (CESS), Hyderabad – 500016, Telangana, India

Abstract


With the end of ATC Act (1995) in 2005, the industry went through a phase of reforms, to integrate with global market. This paper uses data of 1591 firms obtained from Prowess (CMIE) for the period 2002 - 17 to examine the determinants relating to exports in Indian Textile industry. Variables estimation is carried under both ‘Fixed and Random’ effect specifications and propose a Hausman test which compares these two model accountings for disturbances. ‘Foreign earnings’, R&D intensity & Capital intensity are found to be major factors for a firm to invest in technology, plant and machinery to increase exports of goods and total revenue of the firm.

Keywords


Export Intensity, Hausman Test, Longitudinal Panel Data, Random Effects Estimator, Technology, R&D.

References





DOI: https://doi.org/10.15410/aijm%2F2018%2Fv7i2%2F128550