Effects of Business-Group Affiliation Overseas Investment and Technology on Firm-level Export Intensity: Evidence from Indian Automotive Component Industry

Abstract

Based upon a sample of 78 firms operating in Indian automotive component industry for the period 2000–2018, this research empirically examines the role of business-group affiliation, overseas investment and technology in determining exports. It applies panel Tobit and Probit model estimated with the maximum likelihood estimator. This research finds that technology imports, firm’s age, overseas investment and affiliation to a business group significantly affect industry’s export performance. However, some variables, such as past R&D intensity, firm’s size and companies with overseas investment and being part of a group have been found to have had a detrimental effect. All these results show that being outward-oriented in terms of overseas investment and being affiliated with a business group makes a significant difference concerning export success.

Keywords

Business-Group affiliation export Indian automotive component industry R&D intensity

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