A study of factors affecting the export participation and performance of agricultural commodities exporters of Tamil Nadu in India

Abstract

Exporters choose to export, for the foreign market through exporters participating in the foreign markets directly and also positively react to price signals in the domestic markets explicitly. When there is an increasing demand for commodities in the world market, exporter would receive higher prices. The specific objective of the study is; to identify factors affecting the export participation and performance of agricultural commodities exporters of Tamil Nadu. The results clearly indicated that among the independent variables, foreign market price and distribution of commodities by the ith firm have significantly and positively influenced the State level of export participation of the exporters. On the contrary, domestic market price, the quantity produced for the domestic market, quantity produced for the foreign market and the cost of export commodities have influenced the export participation negatively. The firms would produce positive quantities for the domestic market, but, in practice, some firms would produce for zero exports. Significant and negative nonlinear results were also found for Domestic market price, Quantity produced for the domestic market, Quantity produced for the foreign market and the cost of export commodities in this study.