Thursday, August 18

Export Performance: A Study of Labour and Capital Intensive Manufacturing Industries in India

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By Sonali Mohapatra

Working Paper No- 445

This paper makes an attempt to explore the export performance and its determinants of labour and capital intensive industries of Indian manufacturing sector for the period of 2004 to 2019. The paper found that the 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 both labour and capital-intensive industry groups. On the other hand, the inverted U shape relation has been found between firm size and export performance. From the policy point of view, the paper suggests that developing export policies for certain industries could help to protect or uphold the export performance of manufacturing sector.

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