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Foreign Direct Investment and Labour: The Case of Indian Manufacturing

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  • Pradhan, Jaya Prakash
  • Abraham, Vinoj
  • Sahoo, Manoj Kumar

Abstract

This paper makes an attempt to evaluate the employment and wage effects of FDI in Indian manufacturing. The findings suggest that foreign firms do not have any adverse effects on the manufacturing employment in India as compared to their domestic counterparts while they significantly pay relatively higher to their workers. Therefore this study tends to imply that labour in fact had benefited from foreign investment in India.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 19023.

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Date of creation: Feb 2004
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Publication status: Published in Labour & Development 1.10(2004): pp. 58-79
Handle: RePEc:pra:mprapa:19023

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Keywords: FDI; Labour; Wages; Employment;

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References

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  1. James R. Markusen & Anthony J. Venables, 1997. "Foreign Direct Investment as a Catalyst for Industrial Development," NBER Working Papers 6241, National Bureau of Economic Research, Inc.
  2. Manuel R. AGOSIN & Ricardo MAYER, 2000. "Foreign Investment In Developing Countries, Does It Crowd In Domestic Investment?," UNCTAD Discussion Papers, United Nations Conference on Trade and Development 146, United Nations Conference on Trade and Development.
  3. Steven Globerman & John C. Ries & Ilan Vertinsky, 1994. "The Economic Performance of Foreign Affiliates in Canada," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 27(1), pages 143-56, February.
  4. Brian Aitken & Ann Harrison & Robert E. Lipsey, 1995. "Wages and Foreign Ownership: A Comparative Study of Mexico, Venezuela and the United States," NBER Working Papers 5102, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Pradhan, Jaya Prakash, 2007. "Growth of Indian Multinationals in the World Economy: Implications for Development," MPRA Paper 12360, University Library of Munich, Germany.
  2. Pradhan, Jaya Prakash, 2005. "Outward Foreign Direct Investment from India: Recent Trends and Patterns," MPRA Paper 12358, University Library of Munich, Germany.
  3. Pradhan, Jaya Prakash, 2005. "How Do Trade, Foreign Investment, and Technology Affect Employment Patterns in Organized Indian Manufacturing?," MPRA Paper 19010, University Library of Munich, Germany.

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