FDI, Technological Choices and Spillovers in Indian Manufacturing Industries

Maitri Ghosh () and Saikat Sinha Roy
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Maitri Ghosh: Bethune College

Chapter Chapter 8 in Globalization of Indian Industries, 2016, pp 171-195 from Springer

Abstract: Abstract With inflow of FDI and MNE operations in the Indian economy in the 1990s, the domestic firms had to face a very crucial issue of technology choice in the face of competition. On the one hand, technology could be imported in both embodied and disembodied form, while on the other hand, thrust could be given to develop local R&D. Again, there could also be a possibility of combining both. This chapter tries to analyse the factors influencing the firms’ technological choices across high technology, medium-high technology, medium-low technology and low-technology industries in the post reforms era. In this process, the role of the ownership of firms and technological spillovers is taken into account. A logit framework is constructed to empirically explore the technology choice determinants. Results suggest that foreign ownership and technological spillovers have significant effect on the technology choices of most Indian manufacturing industries. Dependence on imported foreign technical know-how is also evident.

Keywords: Foreign Direct Investment; Foreign Firm; Knowledge Spillover; Domestic Firm; Foreign Ownership (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:spr:isbchp:978-981-10-0083-6_8

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DOI: 10.1007/978-981-10-0083-6_8

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