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

Murali Patibandla and Amal Sanyal

Review of Applied Economics, 2005, vol. 01, issue 01, 17

Abstract: 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.

Keywords: Industrial Organization; International Relations/Trade; Production Economics; Productivity Analysis; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:reapec:143483

DOI: 10.22004/ag.econ.143483

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