Abstract
This study differentiates total factor productivity (TFP) between the exporting and non-exporting firms in manufacturing sector of India. We use data from the Centre for Monitoring Indian Economy (CMIE) from 2003 to 2015. For a better understanding of the productivity distribution, we create two subgroups of sample based on firm age and size. Moving away from parametric tests this study adopts non-parametric statistics in testing the hypothesis. Productivity levels are found to be higher for the exporting firms as compared to the non-exporting firm. Further, within the exporting firms, those with larger firm size have higher productivity compared to the smaller firms.
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