The Determinants of Firm Competitiveness: Evidence from the Indian Manufacturing Sector

Sahoo, Pradipta Kumar and Le, Viet and Rath, Badri Narayan (2021) The Determinants of Firm Competitiveness: Evidence from the Indian Manufacturing Sector. International Journal of the Economics of Business. pp. 1-21. ISSN 1357-1516

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This paper investigates the determinants of competitiveness of Indian manufacturing sector. First, based on multi-variate Industrial Competitiveness Index (ICI), the result reveals that capital-intensive firms are more competitive than labor-intensive firms. Second, the results also indicate that foreign-owned firms are more competitive than domestic firms. Third, the determinants of competitiveness derived from Feasible Generalized Least Squares (FGLS) and dynamic panel GMM model indicate that the firms' external factors such as Information and Communication Technology (ICT) and infrastructure positively affect manufacturing firms' competitiveness. However, internal factors such as firm age and debt have a negative effect on Indian manufacturing firms' competitiveness, but the lag effect of R&D intensity and advertisement intensity has a positive impact on firms' competitiveness. Our results are robust in different sub-categories based on industry sub-sectors and firm ownership structure.

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IITH Creators:
IITH CreatorsORCiD
Sahoo, Pradipta KumarUNSPECIFIED
Rath, Badri NarayanUNSPECIFIED
Item Type: Article
Uncontrolled Keywords: capital-intensive; ICI index; India; labor-intensive; Manufacturing firm; panel FGLS model
Subjects: Social sciences
Arts > Liberal arts
Divisions: Department of Liberal Arts
Depositing User: . LibTrainee 2021
Date Deposited: 23 Sep 2021 06:34
Last Modified: 23 Sep 2021 06:34
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