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Japanese production networks in India: spatial distribution, agglomeration and industry effects

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  • Sierk A. Horn
  • Adam R. Cross

Abstract

This paper examines the determinants of subnational location choice of Japanese multinational enterprises (JMNEs) in India to investigate whether or not conventional investment behaviour as ‘foot-loose’ and one-off investments has given way to an agglomeration logic as Japanese foreign direct investment has intensified. Using geographic information system analysis of investment project numbers, we find that Japanese MNE behaviour in India is evolving, with complementing but complex subnational interactions of economic, institutional and infrastructure factors serving as strong determinants of location choice consistently across key phases of India’s liberalization. We argue that Japanese investment decisions in India have followed a self-reinforcing dynamic whereby prior investments indeed attract further investment.

Suggested Citation

  • Sierk A. Horn & Adam R. Cross, 2016. "Japanese production networks in India: spatial distribution, agglomeration and industry effects," Asia Pacific Business Review, Taylor & Francis Journals, vol. 22(4), pages 612-640, October.
    • Handle: RePEc:taf:apbizr:v:22:y:2016:i:4:p:612-640
    DOI: 10.1080/13602381.2016.1168625
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    References listed on IDEAS

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    1. Shahid Yusuf & M. Anjum Altaf & Kaoru Nabeshima, 2004. "Global Production Networking and Technological Change in East Asia," World Bank Publications - Books, The World Bank Group, number 14918, December.
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    Cited by:

    1. Sierk Horn & Tomoki Sekiguchi & Matthias Weiss, 2021. "Thrown off track? Adjustments of Asian business to shock events," Asian Business & Management, Palgrave Macmillan, vol. 20(4), pages 435-455, September.

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