The clustering of FDI in India: the importance of peer effects
AbstractWe assess the location choices of 6020 foreign investors at the level of Indian districts. Employing conditional logit models, we find that clustering of Foreign Direct Investment (FDI) is driven strongly by herding among investors from both, the same and other countries of origin. However, the behaviour of Nonresident Indians (NRIs) and German investors is strikingly different.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 19 (2012)
Issue (Month): 8 (May)
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Web page: http://www.tandfonline.com/RAEL20
Other versions of this item:
- Peter Nunnenkamp & Megha Mukim, 2011. "The Clustering of FDI in India: The Importance of Peer Effects," Kiel Working Papers 1697, Kiel Institute for the World Economy.
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
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- Frank Bickenbach & Wan-Hsin Liu & Peter Nunnenkamp, 2013. "Regional Concentration of FDI in Post-reform India: A District-level Analysis," Kiel Working Papers 1854, Kiel Institute for the World Economy.
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