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Regional concentration of FDI in post-reform India: A district-level analysis

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  • Bickenbach, Frank
  • Liu, Wan-Hsin
  • Nunnenkamp, Peter

Abstract

We analyze the concentration of FDI in India at the district level, based on project-specific location choices since the reform program in the early 1990s. The decomposition property of the Theil index allows us to trace changes over time in the overall concentration of FDI to changes in concentration between and within subgroups of districts. We also differentiate between major types and sources of FDI. We find that the extensive margin of concentration persistently increased, with an ever larger number of districts not attracting any projects. The intensive margin increased as well but the increase leveled off in the most recent past. These trends hold for essentially all types and sources of FDI, while the average level of concentration varies considerably between these types and sources.

Suggested Citation

  • Bickenbach, Frank & Liu, Wan-Hsin & Nunnenkamp, Peter, 2013. "Regional concentration of FDI in post-reform India: A district-level analysis," Kiel Working Papers 1854, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1854
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    Cited by:

    1. Frank Bickenbach & Wan-Hsin Liu & Peter Nunnenkamp, 2018. "How global is FDI? Evidence from the analysis of Theil indices," Empirical Economics, Springer, vol. 55(4), pages 1603-1635, December.
    2. Shima'a Hanafy, 2015. "Patterns of Foreign Direct Investment in Egypt—Descriptive Insights from a Novel Panel Dataset at the Governorate Level," MAGKS Papers on Economics 201512, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    3. Bickenbach, Frank & Mbelu, Asithandile & Nunnenkamp, Peter, 2019. "Is foreign aid concentrated increasingly on needy and deserving recipient countries? An analysis of Theil indices, 1995–2015," World Development, Elsevier, vol. 115(C), pages 1-16.
    4. Ramachandran, Renjith & Sasidharan, Subash & Doytch, Nadia, 2020. "Foreign direct investment and industrial agglomeration: Evidence from India," Economic Systems, Elsevier, vol. 44(4).

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    More about this item

    Keywords

    FDI; project location; Theil index; decomposability; India;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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