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

Jaya Prakash Pradhan and Neelam Singh
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Neelam Singh: Lady Shri Ram College, Delhi University

Institutions and Economies (formerly known as International Journal of Institutions and Economies), 2009, vol. 1, issue 1, 156-187

Abstract: In recent years developing countries have emerged as significant participants in the OFDI (outward foreign direct investment), seeking strategic assets. Such asset exploiting-cum-augmenting OFDI involves potential two-way cross-border knowledge flows. This study examines several dimensions of OFDI in the Indian automotive industry – currently internationalizing rapidly in terms of OFDI. This study undertakes a quantitative analysis of the influence of OFDI activities on the in-house (domestic) R&D performance of the Indian automotive firms during 1988-2008, and finds expected favourable impact on the R&D intensity. The study concludes with suggestions to promote OFDI, particularly the strategic asset enhancing OFDI.(Please Puchase For Further Reading)

Keywords: OFDI; knowledge flows; strategic asset-seeking FDI; R&D; automotives (search for similar items in EconPapers)
JEL-codes: F21 F23 L62 O32 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (15)

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Related works:
Working Paper: Outward FDI and Knowledge Flows: A Study of the Indian Automotive Sector (2008)
Working Paper: Outward FDI and Knowledge Flows: A Study of the Indian Automotive Sector (2008)
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