Technology Spillover of Foreign Direct Investment: An Analysis of Different Clusters in India
AbstractThis paper explores the technology spillover effect of foreign direct investment (FDI) in Indian manufacturing industries across different 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 one. The empirical findings reveal significant variations across clusters with regard to spillovers. While some clusters benefit from cluster-specific foreign presence and technology stock, a more commonly observed pattern is that domestic firms in a cluster gain from the presence of foreign firms in other clusters of the region and region-specific technology stock.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 43840.
Date of creation: 01 Oct 2012
Date of revision:
Foreign Direct Investment; Technology Spillover; Clusters; Firm location;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-26 (All new papers)
- NEP-CSE-2013-01-26 (Economics of Strategic Management)
- NEP-GEO-2013-01-26 (Economic Geography)
- NEP-SBM-2013-01-26 (Small Business Management)
- NEP-URE-2013-01-26 (Urban & Real Estate Economics)
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