Technology, firm size and export behaviour in developing countries: The case of Indian enterprises

This article analyses the interfirm variation in export behaviour of Indian enterprises in 13 manufacturing industries using Tobit models. The main contention of the analysis, which is supported by the empirical findings, is that the technology factor could be important for explaining export behaviour of developing country enterprises in medium and low technology industries. The firm size ‐ export performance relationship is found to be predominantly inverted U‐shaped. A higher level of automation is an advantage only in high technology industries. In countries with large home markets government negotiations with MNEs regarding export obligations could be an effective means of expanding manufactured exports.