Trade, Foreign Networks and Performance:
a firm-level analysis for India***
Alessandra Tucci
(Università degli Studi di Milano and Centro Studi Luca d’Agliano)
Preliminary version, last modified March 21st 2005
Abstract
Using Indian firm-level data, this paper examines the
combined role of import and export intensity in a
context of foreign networks. The more Indian firms are
involved in trade networks the more they have a
productivity advantage. Finally, information on the
origin of import and on the destination of output are
used to shed some light on the kind of networks in
which firms are involved. We show that the upstream
or downstream contact with more developed countries
is not correlated with an higher productivity while
there it seems to be an advantage for those firms that
import and export to the same area.
*** I would like to thank Philip Keefer, Giuseppe Iarossi, Taye Mengistae and the WB Investment Climate
Unit for hosting me as a visiting scholar and for providing the survey data which have been used under
arrangements that respected confidentiality requirements. Furthermore I am grateful for helpful comments
and suggestions to Giogio Barba Navaretti, Luca De Benedictis, to the participants to the CNR workshop
in “Trade and Development economics” in Milano and to the Vth Doctoral Meeting in Internatiional Trade
and Internatiional Finance organized by RIEF, CEPN and CEPII in Paris. Usual disclaimers apply.
The author aknowledges the support of the Improving Human Potential Programme and the EC funded
“Trade, Industrialization and Development” Research Training Network