Liberalisation, FDI and productivity spillovers
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Liberalisation, FDI and productivity spillovers an analysis of Indian manufacturing firms by

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Published by Institute of Economic Growth in Delhi .
Written in English



  • India.


  • Manufacturing industries -- India.

Book details:

About the Edition

With reference to India.

Edition Notes

StatementVinish Kathuria.
SeriesWorking paper series ;, no. E/220/2002, Working paper series (Institute of Economic Growth (India)) ;, no. E/2002/220.
ContributionsInstitute of Economic Growth (India)
LC ClassificationsMicrofiche 2003/60156 (H)
The Physical Object
Pagination29 p.
Number of Pages29
ID Numbers
Open LibraryOL3588010M
LC Control Number2002288374

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Liberalisation, FDI, and productivity spillovers--an analysis of Indian manufacturing firms. Vinish Kathuria. Oxford Economic Papers, , vol. 54, issue 4, Abstract: The objective of the intensification of reforms in India's trade, technology and industry policies in was to make Indian industry competitive. In the light of these Cited by: measuring FDI effects on productivity growth of the host country firms. The key argument of productivity spillovers 1 is that technology brought by the foreign firms diffuse to the domestic firms through various channels altering their production capacity or productivity of the domestic firms. Foreign Direct Investment and Productivity Spillovers: the Experience of ASEAN Countries I. Introduction In the past decade and until the financial and economic crisis of the late s, FDI flows concerning ASEAN countries have exhibited huge growth rates, especially more than +50% from to Consequently, as a percentage of. Foreign direct investment (FDI) projects are assumed to be accompanied by potential external effects – so-called FDI spillovers – which are supposed to affect productivity levels of other firms in a host country. Empirical results on this topic are inconclusive and most studies focus on one country.

  Barrios S, Strobl E () Foreign direct investment and productivity spillovers: evidence from the Spanish experience. Weltwirtschaftliches Archiv (3)– CrossRef Google Scholar Basant R, Fikkert B () The effects of R&D, foreign technology purchase, and domestic and international spillovers on productivity in Indian firms.   For example, Hu and Jefferson () study FDI spillovers in China’s electronic and textile industries while Hale and Long () use a sample of firms in five Chinese cities in Fleisher, Li, and Zhao () examine province-level data and find that FDI had positive productivity spillovers before but not after. Downloadable! In recent decades, foreign direct investment (FDI) played an important role in achieving economic growth and development especially for developing countries. FDI bring capital and introduced new technology. Moreover, the new technology can also spill over to the local firms in the host country. For this reason, FDI often considered as the most significant channel for technology.   The latter studies of FDI externalities often emphasize the positive productivity spillovers via vertical linkages—i.e., from foreign firms to .

The research on technological spillovers from FDI shows weak and inconclusive results. 1 A large body of the literature on technological spillovers from FDI in the PRC, too large to be fully reviewed in this paper, mostly focuses on horizontal spillovers, even though vertical spillovers are likely to be important (Moran ). 2 Hale and Long. FDI may be used as a vehicle for increasing productivity growth (Bitzer & Gorg, ). FDI can bring newer technology transfer to developing countries than licensing (Mansfield & Romeo, ). In addition, it possibly improves the knowledge and skills of managers or workers, and enhances efficiency and productivity in production and performance. Total Factor Productivity Spillovers in India In research and policy, the understanding and assessment of the economic impact of trade liberalisation policies on productivity of firms is a difficult endeavour. A thorough understanding of the economic impact of any policy spillover effects from Foreign Direct Investment (FDI) on domestic.   This paper explores the relationship between foreign direct investment (FDI) and the productivity of host country domestic firms. We rely on a specially designed survey of over manufacturing firms in Vietnam, and separate out productivity gains along the supply chain (obtained through direct transfers of knowledge/technology between linked firms) from productivity effects .