| Popis: |
This Chapter develops econometric modelling to test for relationships between firm size and exports under theoretical factors of technology, organization, and economies of scale. We measured different and relevant variables. We specified the equations based on a carefully formulated hypothesis taking into account non-linearity in relationships between dependent and independent variables. It econometrically tested for the relationship between firm size and international trade behaviour from different dimensions. Large firms with domestic market power and better access to imports were less export oriented than medium and small-scale firms. Small firms in general adopted labour-intensive production practices in tune with comparative advantage. Small firms that faced inefficient subcontract relations and those that reached a critical technological size went in for export markets with efficient payments arrangements. Consequently, about 50 per cent of India’s exports were accounted for by small and medium scale firms. |
