Export performance: a study of labour and capital intensive manufacturing industries in India

Abstract

This paper makes an attempt to examine the export performance and its determinants of labour and capital intensive industries of the Indian manufacturing sector for the period 2004–2019. The paper found that labour intensive industries are more export-oriented than capital intensive industries. Foreign share, research and development and real effective exchange rate have a positive relationship with the export performance of most of the industries classified under labour intensive and capital intensive industry groups. Overall, the firm size has a negative impact on export performance and at the industry level, the firm's size has both positive and negative impact on export performance. From the policy perspective, the paper suggests that export promotion policies for specific industries could help to protect or promote certain manufacturing industries.