Trade Liberalisation, Technology Import, and Indian Manufacturing Exports

The study examines the impact of embodied (capital goods) and disembodied (royalties, technical fees etc.) technology import on Indian manufacturing exports during 1995-2016. The panel econometric analysis based on OLS, RE, FGLS, and Tobit regression revealed a significant impact of both forms of technology purchase on overall manufacturing exports. The use-based classification of manufacturing revealed that the embodied technology facilitated the exports of intermediate and capital goods while the disembodied technology helped theexports of consumer goods and capital goods. In all cases, the impact of technology import on the exports of basic goods is negligible. We also find a statistically significant impact of R&D on Indian exports.