A Study of Factors Affecting the Export Participation and Performance of Agricultural Commodities Exporters of Tamil Nadu in India Kanaka S.1,*, Chinnadurai M.2 1TN-IAM project, MDPU, Chennai-600005, Tamil Nadu, India 2Tamil Nadu Agricultural University, Coimbatore-641003, Tamil Nadu, India *Corresponding Author: kanaka.janu@rediffmail.com
Online Published on 12 September, 2023. Abstract This paper employed the agricultural commodities export to empirically examine the effects of domestic market price, produced quantity, foreign market price and export cost factors on a firm’s decision to export and the export performance of 337 Tamil Nadu agricultural commodities exporters which are classified into ten commodity groups. Four limited dependent variable models (i.e., the probit model) are used to study the factors affecting a firm’s export decision and its export performance. Estimation techniques were used to check the statistical confidence of the results for this study. With regards to firm specific factors which exert an influence on a firm’s decision to export and its export performance, firm size, firm age, and productivity, government assistance, foreign investment (ownership), municipal location, research and development, and literate exporter were found to be significantly and positively related to a firm’s export participation and its export performance. All firms would produce positive quantities for the domestic market but, in practice, some firms would produce for zero exports. Significant and negative nonlinear results were also found for Domestic market price, Quantity produced for domestic market, Quantity produced for foreign market and export cost of the commodities in this study. Focusing on the effects of foreign market price and distribution of commodities on a firm’s decision to export and its export performance, producer concentration was found to have a significant and positive effect on a firm’s export decision and its export performance. Finally, evidence-based policies are provided to facilitate improvement in the international competitiveness of Tamil Nadu agricultural commodities exporter and in their export performance. Top Keywords Tamil Nadu agricultural commodities exporter, Probit Analysis, Export competitiveness. Top |