The determinants of export behaviour: a study of food processing industry in India

Abstract

The study examines the factors that determine the export behaviour of food processing firms operating in India based on data from the Centre for Monitoring Indian Economy (CMIE) Prowess Database for 2011–2016. It examines the effect of three technological variables on the export behaviour of firms: information and communication technology (ICT) investment, in-house research and development (R&D), and the import of embodied technologies. Further, it tries to understand if the technological activities of affiliated firms have any effect on their export performance. Using the Heckman two-step sample selection analysis, it reveals that technology investments are important determinants for the export behaviour of firms. Other control variables like firm size, firm age, and the capital–labour ratio were also found to be important in determining the export behaviour of food processing firms. The study gives policy suggestions for improving the global competitiveness of firms in this industry. © © 2022 Inderscience Enterprises Ltd.