Chasing the dragon: accounting for the under-performance of India by comparison with China in attracting foreign direct investment

John S Henley
Additional contact information
John S Henley: University of Edinburgh Management School, 50 George Square, Edinburgh EH8 9JY, Scotland, UK, Postal: University of Edinburgh Management School, 50 George Square, Edinburgh EH8 9JY, Scotland, UK

Journal of International Development, 2004, vol. 16, issue 7, 1039-1052

Abstract: This paper compares the performance of India and China in attracting foreign direct investment (FDI). China ranks number one as the world's preferred foreign investment destination. FDI statistics suggest that India's performance has been significantly understated but India still lags absolutely for several reasons. These include a high tariff regime, poor physical infrastructure, a regulatory system that is too often not business friendly and a policy of reservation of many potentially export-oriented sectors for small businesses. The paper concludes that further liberalization of India's FDI regime is likely to be driven by external pressures and state-level initiatives. Copyright © 2004 John Wiley & Sons, Ltd.

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://hdl.handle.net/10.1002/jid.1153 Link to full text; subscription required (text/html)

Related works:
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:wly:jintdv:v:16:y:2004:i:7:p:1039-1052

DOI: 10.1002/jid.1153

Access Statistics for this article

Journal of International Development is currently edited by Paul Mosley and Hazel Johnson

More articles in Journal of International Development from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().