Does the Technology Gap Influence Spillovers? A Post-liberalization Analysis of Indian Manufacturing Industries
AbstractThe purpose of this article is twofold: first to examine spillovers from existing foreign firms in India to local firms and whether the technology gap between foreign and domestic firms has any role to play in influencing spillovers; and second, to investigate whether the liberalization of the 1990s resulting in increased inflow of foreign direct investment (FDI) has had any influence in increasing the productivity of Indian firms. Using panel data for 1840 firms from 1995 to 2005, this study finds that in a large number of industries domestic firms are more productive than foreign firms, thereby precluding the possibility of spillovers to all the sectors. Even in the sectors where foreign firms are more productive and the technology gap is accounted for, there is no evidence of spillovers resulting from the presence of foreign firms. Similarly, FDI inflow seems to have no impact on productivity once industries are divided according to the size of the technology gap.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Oxford Development Studies.
Volume (Year): 38 (2010)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.tandfonline.com/CODS20
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.