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Kokko (1998), вЂњMultinational Corporations and SpilloversвЂќ, Journal of Economic Survey, 12 (2), 1-31.Д¬hhibber P. (2009), вЂњTechnological Efforts, Firm Size and Exports in the Basic Chemical Industry in IndiaвЂќ, Oxford Development Studies, 37 (2), 145-169.Д«lomstrГ¶m, M and A. (2004), вЂњExporting through Technological Capability: Econometric Evidence from IndiaвЂ™s Pharmaceutical and Electrical/Electronics FirmsвЂќ, Oxford Development Studies, 32 (1), 87-100.Д«hat S. (2004), вЂњWhy Some Firms ExportвЂќ, Review of Economics and Statistics, 86, 561-569.Д«haduri S. (1995), вЂњMultinational Firms and Export Performance in Developing Countries: Some Analytical Issues and New Empirical EvidenceвЂќ, Journal of Development Economics, 46, 109-122.Д«ernard A. (2002), вЂњLiberalisation, Multinational Enterprises and Export Performance: Evidence from Indian ManufacturingвЂќ, Journal of Development Studies, 38 (3), 119-137.ДЄthukorala P., Jayasuriya S. L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification, and ScopeДЄggarwal A. Item Type:ДЇDI and firm level export competitiveness in the Indian machinery industryДЇDI, Export Competitiveness, Indian Machinery Industry However,the export intensity of exporting firms is not affected by FDI but affected favourably by a host of other firm-specific factors such as arms length import of disembodied technology, import of raw material and capital goods, use of labour intensive technology, larger size and years of experience.

Findings of the study reveals that the foreign controlled firms have greater likelihood of exporting, even after controlling for the large number of additional factors influencing export activity.

It defines the firm-level export competitiveness involving two aspects of export behaviour: i) the export itself or a firmвЂ™s decision to export and ii) the exporting firmвЂ™s decision on the portion of output to export (export intensity). The paper examines the effect of FDI on firm-level export competitiveness by comparing the export behaviour of foreign controlled and domestic firms in Indian machinery industry.

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