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Foreign Investment and Productivity: A Study of Post-reform Indian Industry

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  • Patibandla, Murali

    (Department of International Economics and Management, Copenhagen Business School)

Abstract

The paper uses panel data for Indian industries in the post-reform period to study the direct and indirect productivity effects at firm level generated by foreign investment. It finds no evidence that foreign investment directly increases firm-level productivity, nor that R&D spending is more productive in firms or sectors with higher foreign investment. It however finds strong evidence that local firms benefit from foreign investment in their industries. These benefits are higher for larger firms and those that do more business domestically.

Suggested Citation

  • Patibandla, Murali, 2002. "Foreign Investment and Productivity: A Study of Post-reform Indian Industry," Working Papers 1-2002, Copenhagen Business School, Department of International Economics and Management.
    • Handle: RePEc:hhb:cbsint:2002-001
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    File URL: http://openarchive.cbs.dk/cbsweb/handle/10398/6582
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    References listed on IDEAS

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    Keywords

    Transnational Corporations; Foreign Investment; Technology Spillover; Indian industries.;
    All these keywords.

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