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

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


Issue Date:
2005-06
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/143483
Published in:
Review of Applied Economics, Volume 01, Number 1
Page range:
26-42
Total Pages:
17
JEL Codes:
L60; C23; F23
Series Statement:
Vol.1
No.1




 Record created 2017-04-01, last modified 2017-04-28

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