Technological Catch-up to the National and Regional Frontier: Firm-level Evidence for India.

Yang, S., Lancheros Torres, S. and Milner, C. 2021. Technological Catch-up to the National and Regional Frontier: Firm-level Evidence for India. Journal of Development Studies . 57 (8), pp. 1303-1320. https://doi.org/10.1080/00220388.2021.1881492

TitleTechnological Catch-up to the National and Regional Frontier: Firm-level Evidence for India.
TypeJournal article
AuthorsYang, S., Lancheros Torres, S. and Milner, C.
Abstract

This paper studies productivity convergence to the regional and national frontiers among manufacturing firms in India, using panel data over the period 1999 to 2010. We find evidence that lagging firms converge to their national and regional frontiers, with faster speed of convergence to the national frontier than to their regional frontier. We extend our analysis to explore how firms’ participation in foreign markets (through exporting and investing abroad) affects the process of convergence. Our results suggest a ranking of firms’ speed of convergence based on their level of international engagement through exports, with non-exporters converging faster to their technological frontiers, followed by non-continuous exporters, and finally by continuous exporters. These results suggest that more established exporters are closer to the technological frontier and therefore have less scope to catch up than their less persistent counterparts and non-exporting firms. However, we did not find significant differences in the speed of convergence amongst exporting firms that have moved to the next stage of globalisation by investing abroad.

JournalJournal of Development Studies
Journal citation57 (8), pp. 1303-1320
ISSN0022-0388
1743-9140
Year2021
PublisherTaylor & Francis
Publisher's version
License
CC BY-NC-ND 4.0
File Access Level
Open (open metadata and files)
Digital Object Identifier (DOI)https://doi.org/10.1080/00220388.2021.1881492
Publication dates
Published online22 Feb 2021

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