Determinants of export performance: An empirical analysis of the Indian pharmaceutical and automobile industries

Abstract

Market globalization provides export-led growth opportunities for firms. Exporting is considered to be a means to corporate growth for firms in various Indian industries. Among the Indian industries, knowledge-based industries, such as pharmaceuticals and automobiles, have witnessed export oriented growth in the past two and half decades. This study presents an empirical analysis of the determinants of export performance in the Indian pharmaceutical and automobile industries. Among the various determinants of export performance considered in earlier studies, this study considered export sales as the dependent variable, with sales of the firm, profitability, and R&D investments as independent variables. The results indicate that sales and R&D investments especially important in the Indian pharmaceutical industry, while profitability was found to be important in the Indian automobile industry.