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Graduating to globalisation: A study of southern multinationals

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  • Demirbas, Dilek

    ()
    (Newcastle Business School)

  • Patnaik, Ila

    ()
    (National Institute of Public Finance and Policy)

  • Shah, Ajay

    ()
    (National Institute of Public Finance and Policy)

Abstract

FDI by firms in developing countries is a recent phenomenon and demands a study of relationship between firm productivity and different modes of globalisation activities. This paper attempts to understand this relationship through ordered probit models, examining two key hypotheses using firm level panel data from India. First, we test whether there are characteristic differences between domestic firms, exporting firms and firms engaging with FDI. Second, we test if FDI is an integral part of the evolution of firms in developing countries. Our results suggest that there are strong differences between domestic firms, exporting firms, and firms that invest abroad, especially in their knowledge investment, indicating the presence of a ladder of quality in graduating to globalisation.

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Bibliographic Info

Paper provided by National Institute of Public Finance and Policy in its series Working Papers with number 10/65.

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Length: 20
Date of creation: Feb 2010
Date of revision:
Handle: RePEc:npf:wpaper:10/65

Note: Working Paper 65, 2010
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Web page: http://www.nipfp.org.in

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Cited by:
  1. Ajay Shah & Ila Patnaik, 2010. "Why India Choked when Lehman Broke," Working Papers id:2362, eSocialSciences.
  2. Rudrani Bhattacharya & Ila Patnaik & Ajay Shah, 2012. "Export Versus FDI in Services," The World Economy, Wiley Blackwell, vol. 35(1), pages 61-78, 01.

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