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Determinants of foreign direct investment in the mining sector in Asia: A comparison between China and India


  • Vivoda, Vlado


The aim of this paper is to assess the conditions that influence foreign direct investment in the mineral industries of China and India. The paper first surveys literature on the determinants of foreign direct investment to identify key conditions, under which host countries attract mining FDI. It then builds an evaluative framework which allows for comparative analysis. The paper then comparatively evaluates the performance of foreign investment regimes that govern mineral industries in China and India. Its findings show that the overall conditions for foreign mining investment in China and India are not favourable and that substantial policy, regulatory and other changes in both countries need to be made if more investment is to flow.

Suggested Citation

  • Vivoda, Vlado, 2011. "Determinants of foreign direct investment in the mining sector in Asia: A comparison between China and India," Resources Policy, Elsevier, vol. 36(1), pages 49-59, March.
  • Handle: RePEc:eee:jrpoli:v:36:y:2011:i:1:p:49-59

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    References listed on IDEAS

    1. Globerman, Steven & Shapiro, Daniel, 2002. "Global Foreign Direct Investment Flows: The Role of Governance Infrastructure," World Development, Elsevier, vol. 30(11), pages 1899-1919, November.
    2. Chatterjee, K. K., 2002. "Imperatives for attracting investment and technology in the Indian mining sector," Resources Policy, Elsevier, vol. 28(3-4), pages 105-115.
    3. Morisset, Jacques, 2000. "Foreign direct investment in Africa : policies also matter," Policy Research Working Paper Series 2481, The World Bank.
    4. Limaye, Mohan R., 1998. "Doing business in India: Aspects of the political dimension," Business Horizons, Elsevier, vol. 41(6), pages 34-40.
    5. Suma Athreye & Sandeep Kapur, 2001. "Private Foreign Investment in India: Pain or Panacea?," The World Economy, Wiley Blackwell, vol. 24(3), pages 399-424, March.
    6. Singh, Kanhaiya & Kalirajan, Kaliappa, 2003. "A decade of economic reforms in India: the mining sector," Resources Policy, Elsevier, vol. 29(3-4), pages 139-151.
    7. Terry O'Callaghan, 2009. "Regulation and Governance in the Philippines Mining Sector," Asia Pacific Journal of Public Administration, Taylor & Francis Journals, vol. 31(1), pages 91-114, June.
    8. Jalilian, Hossein & Kirkpatrick, Colin & Parker, David, 2007. "The Impact of Regulation on Economic Growth in Developing Countries: A Cross-Country Analysis," World Development, Elsevier, vol. 35(1), pages 87-103, January.
    9. Davis, Graham A., 2010. "Trade in mineral resources," WTO Staff Working Papers ERSD-2010-01, World Trade Organization (WTO), Economic Research and Statistics Division.
    10. Kyla Tienhaara, 2006. "Mineral investment and the regulation of the environment in developing countries: lessons from Ghana," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 6(4), pages 371-394, December.
    11. S. Narayan, 2009. "India," Chapters,in: The Political Economy of Trade Reform in Emerging Markets, chapter 7 Edward Elgar Publishing.
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    Cited by:

    1. Massari, Stefania & Ruberti, Marcello, 2013. "Rare earth elements as critical raw materials: Focus on international markets and future strategies," Resources Policy, Elsevier, vol. 38(1), pages 36-43.

    More about this item


    China India Mining sector FDI determinants D81 F23 Q38;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)


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