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1、035$MunichPersonalRePEcArchiveLabourCostandExportBehaviourofFirmsinIndianTextileandClothingIndustryVinojAbrahamandS.K.SasikumarCentreforDevelopmentStudies,PrasanthNagar,Ulloor,Trivandrum,Kerala,India,V.V.GiriNationalLabourInstitute,NOIDA,U.P.16.March2010Onlineathttps://mpra.ub.uni-muenchen.de/
2、22784/MPRAPaperNo.22784,posted19.May201015:39UTCLabourCostandExportBehaviourofFirmsinIndianTextileandClothingIndustryVinojAbrahamAssistantProfessorCentreforDevelopmentStudiesTrivandrum,Kerala,India&SKSasikumarSeniorFellowV.V.GiriNationalLabourInstituteNOIDA,UP,IndiaAddressforcorrespondenceDr.V
3、inojAbrahamAssistantProfessorCentreforDevelopmentStudiesPrasanthNagar,UlloorThiruvananthapuram–695011KeralaEmail:vinoj@cds.ac.in1LabourCostandExportBehaviourofFirmsinIndianTextileandClothingIndustryVinojAbraham&S.K.SasikumarAbstract:TheimplementationoftheAgreementonTextileandClothing(ATC)ofthe
4、WorldTradeOrganization(WTO)rendersboththreatsandopportunitiestoIndia’sTextileandClothing(T&C)industryinthewakeofliberalinternationaltradeinthesector.Firmsacquiregreaterinternationalcompetitivenessthroughvariouscostcuttingandefficiencyenhancingstrategies.Thequestionwetrytoponderonis,whatroutedo
5、esIndianfirmstaketojointheinternationalexportmarketinT&C.Empiricalanalysis,usingTobitestimationtechniques,supportedtheviewthatincreasingtheshareoflowcostlabourwasanimportantroutethroughwhichexportperformanceoftheIndianfirmsinT&Cwasenhanced.Further,theuseofthismeanstoperformbetterintheinternati
6、onalmarketaggravatedintheperiodaftertheimplementationoftheATC.Ontheotherhand,capitalandtechnologybasedfactorsdidnothaveanyperceptiveeffectontheexportperformanceofIndianfirmsintheinternationalmarket.ThisendorsestheviewthattheIndianT&Cfirmsbyandlargeutilizedthelowroadtocompetitiveness,ratherthan
7、theother.AlsotheimportanceoftheimportintensityinexportperformancesuggeststhatIndianT&Cisincreasinglygettingintegratedwithintheglobalvaluechain.Keywords:Exportperformance,Textileandclothingindustry,labourcost,TobitModel,AgreementonTextil
