Technology Spillover and Determinants of Foreign Direct Investment: An Analysis of Indian Manufacturing Industries
This paper examines the spillover effect of foreign direct investment (FDI) and determinant of FDI across Indian manufacturing industries. The result, based on two-equation model that allows for the two-way link between labor productivity of locally owned industries and foreign presence provide evidence that foreign presence brings new channels of knowledge and technology spillover to domestic industrial firms. We find that intermediate factors like R&D intensity and technology import intensity can impact positively the productivity of domestic firms. Furthermore, we find that bigger market size and highly productive domestic sectors are likely to attract more foreign capital into Indian industries.
|Date of creation:||01 Aug 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert E. Hall, 1986.
"The Relation Between Price and Marginal Cost in U.S. Industry,"
NBER Working Papers
1785, National Bureau of Economic Research, Inc.
- Hall, Robert E, 1988. "The Relation between Price and Marginal Cost in U.S. Industry," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 921-47, October.
- Paul Romer, 1989.
"Endogenous Technological Change,"
NBER Working Papers
3210, National Bureau of Economic Research, Inc.
- Jakob B. Madsen & Shishir Saxena & James B. Ang, 2008.
"The Indian Growth Miracle And Endogenous Growth,"
CAMA Working Papers
2008-29, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Jakob B. Madsen & Shishir Saxena & James B. Ang, 2009. "The Indian Growth Miracle And Endogenous Growth," Monash Economics Working Papers 03-09, Monash University, Department of Economics.
- Jakob Madsen & Shishir Saxena & James Ang, 2008. "The Indian Growth Miracle And Endogenous Growth," Monash Economics Working Papers 17/08, Monash University, Department of Economics.
- Helpman, E., 1998.
"R&D and Productivity : The International Connection,"
10-98, Tel Aviv.
- Elhanan Helpman, 1997. "R&D and Productivity: The International Connection," NBER Working Papers 6101, National Bureau of Economic Research, Inc.
- Elhanan Helpman, 1997. "R&D and Productivity: The International Connection," Harvard Institute of Economic Research Working Papers 1798, Harvard - Institute of Economic Research.
- Andrea Fosfuri & Massimo Motta & Thomas Ronde, 1998.
"Foreign direct investments and spillovers through workers' mobility,"
Economics Working Papers
258, Department of Economics and Business, Universitat Pompeu Fabra.
- Fosfuri, Andrea & Motta, Massimo & Ronde, Thomas, 2001. "Foreign direct investment and spillovers through workers' mobility," Journal of International Economics, Elsevier, vol. 53(1), pages 205-222, February.
- Fosfuri, Andrea & Motta, Massimo & Rønde, Thomas, 1999. "Foreign Direct Investment and Spillovers through Workers' Mobility," CEPR Discussion Papers 2194, C.E.P.R. Discussion Papers.
- Sourafel Girma, 2005.
"Absorptive Capacity and Productivity Spillovers from FDI: A Threshold Regression Analysis,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 67(3), pages 281-306, 06.
- Sourafel Girma, 2003. "Absorptive capacity and productivity spillovers From FDI: a threshold regression analysis," European Economy Group Working Papers 25, European Economy Group.
- N. Gregory Mankiw & David Romer & David N. Weil, 1992.
"A Contribution to the Empirics of Economic Growth,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 107(2), pages 407-437.
- Easterly, William & DEC, 1993.
"How much do distortions affect growth?,"
Policy Research Working Paper Series
1215, The World Bank.
- Hamilton, James D. & Monteagudo, Josefina, 1998. "The augmented Solow model and the productivity slowdown," Journal of Monetary Economics, Elsevier, vol. 42(3), pages 495-509, October.
- Sjöholm, Fredrik, 1997.
"Technology Gap, Competition and Spillovers from Direct Foreign Investment: Evidence from Establishment Data,"
SSE/EFI Working Paper Series in Economics and Finance
212, Stockholm School of Economics.
- Fredrik Sjoholm, 1999. "Technology gap, competition and spillovers from direct foreign investment: Evidence from establishment data," Journal of Development Studies, Taylor & Francis Journals, vol. 36(1), pages 53-73.
- Suma Athreye & Sandeep Kapur, 2004.
"Industrial Concentration in a Liberalising Economy: a Study of Indian Manufacturing,"
Open Discussion Papers in Economics
51, The Open University, Faculty of Social Sciences, Department of Economics.
- Suma Athreye & Sandeep Kapur, 2006. "Industrial concentration in a liberalising economy: A study of Indian manufacturing," Journal of Development Studies, Taylor & Francis Journals, vol. 42(6), pages 981-999.
- Noh-Sun Kwark & Yong-Sang Shyn, 2006. "International R&D spillovers revisited: Human capital as an absorptive capacity for foreign technology," International Economic Journal, Taylor & Francis Journals, vol. 20(2), pages 179-196.
- Ronald Findlay, 1978. "Relative Backwardness, Direct Foreign Investment, and the Transfer of Technology: A Simple Dynamic Model," The Quarterly Journal of Economics, Oxford University Press, vol. 92(1), pages 1-16.
- Kokko, Ari, 1994. "Technology, market characteristics, and spillovers," Journal of Development Economics, Elsevier, vol. 43(2), pages 279-293, April.
- Ang, James, 2009. "Do Financial Sector Policies Promote Innovative Activity in Developing Countries? Evidence from India," MPRA Paper 14495, University Library of Munich, Germany.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:42178. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.