Outward FDI and Knowledge Flows: A Study of the Indian Automotive Sector

Jaya Prakash Pradhan and Neelam Singh

MPRA Paper from University Library of Munich, Germany

Abstract: In recent years developing countries have emerged as significant participants in the OFDI (outward foreign direct investment) activities having the strategic asset seeking motive. Such OFDI which is assets exploiting cum augmenting involves potential two way cross border knowledge flows. This study examines these issues for the Indian automotive industry that is currently transnationalizing at a rapid rate in terms of both exports and OFDI. The study traces the technological capability building and several dimensions of OFDI in this industry. The case studies of two major automotive Groups highlight their competence building, and knowledge seeking operations. This study undertakes a quantitative analysis of the influence of OFDI activities on the in‐house (domestic) R&D performance of Indian automotive firms during 1988–2008. As expected, the favourable impacts on R&D intensity appear to be stronger for developed vs. developing host nations, and for joint venture vs. wholly‐owned ownership OFDI. The study concludes with suggestions to promote particularly the strategic asset enhancing OFDI.

Keywords: OFDI; Strategic Assets‐seeking FDI; R&D; Automotive Industry (search for similar items in EconPapers)
JEL-codes: F21 F23 L62 O32 (search for similar items in EconPapers)
Date: 2008-11
New Economics Papers: this item is included in nep-cse
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/12325/1/MPRA_paper_12325.pdf original version (application/pdf)

Related works:
Working Paper: Outward FDI and Knowledge Flows: A Study of the Indian Automotive Sector (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:12325

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().