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Foreign Direct Investment and Technology Spillover: An Evaluation Across Different Clusters in India

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  • Pami Dua

    ()

  • B N Goldar

    ()

  • Smruti Ranjan Behera

    ()

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Abstract

The paper attempts to explore the technology spillover effects of Foreign Direct Investment (FDI) in Indian manufacturing industries across different selected clusters in India. To measure the spillover effect to domestic firms in a particular cluster, a model is used that combines an innovative production function with a conventional production function. The model parameter estimates provide an evaluation of the technology spillovers in a cluster and the inter-cluster spillovers taking place in various regions. [Working Paper No. 200]. URL:[http://www.cdedse.org/].

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Paper provided by eSocialSciences in its series Working Papers with number id:4382.

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Date of creation: Aug 2011
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Handle: RePEc:ess:wpaper:id:4382

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Keywords: FDI; foreign direct investment; Indian; manufacturing industries; India; domestic firms; production function; technology spillovers; regions; developing economies; productivity; Pareto-improving distribution; competition; Economic geography; Resources; capital; technology; inputs; Competitive Advantage;

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  1. Lisa De Propris & Nigel Driffield, 2006. "The importance of clusters for spillovers from foreign direct investment and technology sourcing," Cambridge Journal of Economics, Oxford University Press, vol. 30(2), pages 277-291, March.
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  8. László Halpern & Balázs Muraközy, 2007. "Does distance matter in spillover?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15, pages 781-805, October.
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  17. Haddad, Mona & Harrison, Ann, 1993. "Are there positive spillovers from direct foreign investment? : Evidence from panel data for Morocco," Journal of Development Economics, Elsevier, vol. 42(1), pages 51-74, October.
  18. Blalock, Garrick & Gertler, Paul J., 2008. "Welfare gains from Foreign Direct Investment through technology transfer to local suppliers," Journal of International Economics, Elsevier, vol. 74(2), pages 402-421, March.
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  20. Kokko, Ari, 1994. "Technology, market characteristics, and spillovers," Journal of Development Economics, Elsevier, vol. 43(2), pages 279-293, April.
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  23. Brun, J. F. & Combes, J. L. & Renard, M. F., 2002. "Are there spillover effects between coastal and noncoastal regions in China?," China Economic Review, Elsevier, vol. 13(2-3), pages 161-169.
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