Impact of Trade Liberalization on Foreign Direct Investment in Indian Industries
AbstractThe paper undertakes analyses at three levels and the results arrived at different levels indicate that trade liberalization has had a favourable effect on FDI flows in India. It is also found that the regions having greater extent of international trade are able to attract greater amount of FDI. Some evidence is found that point to differential effects of trade associated with international vertical integration and intra-industry trade. Though liberalization has led to a substantial increase in intra-industry trade, much of the intra-industry being horizontal in nature in India is not found to have a strong favourable effect on FDI.
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Bibliographic InfoPaper provided by Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada. in its series Working Papers with number 3607.
Length: 28 pages
Date of creation: Jun 2007
Date of revision:
Publication status: Published in ARTNeT website
Contact details of provider:
Web page: http://www.unescap.org/tid/artnet/
Trade Liberalization; Foreign Direct Investmetn; India; Indian Industries;
Find related papers by JEL classification:
- F1 - International Economics - - Trade
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- James R. Markusen & Keith E. Maskus, 2001. "A Unified Approach to Intra-Industry Trade and Direct Foreign Investment," NBER Working Papers 8335, National Bureau of Economic Research, Inc.
- C. Veeramani, 2007. "Industry-Specific Determinants of Intra-Industry Trade in India," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 42(2), pages 211-229, December.
- James R. Markusen, 1995. "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 169-189, Spring.
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