Does Export Intensity Affect Firm Performance ? Evidence from Basic Metal Industry in India

With technological advancement, the world has shrunk in the form of a ‘global village’. Acknowledging this fact, the main question of this study is going to be: whether participation of a firm in the global market (in the form of export of its finished produces into the world-wide end points) has an effect on its performance or not? Here we take into account the experience of basic metal industry in India during 2000-01 to 2014-15 for the reason that it is having a vital role in the prosperity of Indian economy. Further, the growth of sectors such as agriculture, transportation, communication and infrastructure are at the mercy of basic metal industry’s growth. The study uses Data Envelopment Analysis (DEA) methodology by taking Input output data of 147 companies that come under basic metal industry classification have been taken for the analysis. In the first stage of analysis technical efficiency of all companies has been calculated. Only five sub-groups namely aluminium & aluminium products, castings & forgings, metal products, steel and steel pipes & tubes have been considered for the group frontier analysis and for estimating Technology Closeness Ratio (TCR)