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The export-diversifying impact of and U.S. foreign direct investments in indian manufacturing sector

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Author Info
Rashmi Banga (Indian Council for Research on International Economic Relations)

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Abstract

The paper highlights the export-diversifying impact of FDI in a developing country. FDI from a particular source may lead to export diversification of developing countries if it positively affects the export-intensity of the non-traditional export sector. Indirectly, FDI may encourage export diversification by spillover effects on the exportintensity of domestic firms in the non-traditional export sector. The empirical results forthe Indian economy in the post liberalization period show that FDI from U.S. has led to diversification of India's exports both directly as well as indirectly. However, Japanese FDI has had no significant impact on India's exports

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File URL: http://www.icrier.org/pdf/110.pdf
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Publisher Info
Paper provided by Indian Council for Research on International Economic Relations, New Delhi, India in its series Indian Council for Research on International Economic Relations, New Delhi Working Papers with number 110.

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Length: 29 pages
Date of creation: Sep 2003
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Handle: RePEc:ind:icrier:110

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Related research
Keywords: FDI and Exports Indian Exports Export-Diversification Japanese FDI U.S. FDI

Find related papers by JEL classification:
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
L6 - Industrial Organization - - Industry Studies: Manufacturing
O1 - Economic Development, Technological Change, and Growth - - Economic Development

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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
  1. Rashmi Banga, 2005. "Impact of liberalisation on wages and employment in Indian manufacturing industries," Indian Council for Research on International Economic Relations, New Delhi Working Papers 153, Indian Council for Research on International Economic Relations, New Delhi, India. [Downloadable!]
    Other versions:
  2. Arvind Virmani, 2005. "Policy regimes, growth and poverty in India : Lessons of government failure and entrepreneurial success," Indian Council for Research on International Economic Relations, New Delhi Working Papers 170, Indian Council for Research on International Economic Relations, New Delhi, India. [Downloadable!]
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This page was last updated on 2009-6-17.


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