Technology Spillover of Foreign Direct Investment: An Analysis of Different Clusters in India

Smruti Ranjan Behera Behera, Pami Dua and Bishwanath Goldar Goldar

MPRA Paper from University Library of Munich, Germany

Abstract: This paper explores the technology spillover effect of foreign direct investment (FDI) in Indian manufacturing industries across different clusters in India. To measure the spillover effect to domestic firms in a particular cluster, a model is used that combines an innovative production function with a conventional one. The empirical findings reveal significant variations across clusters with regard to spillovers. While some clusters benefit from cluster-specific foreign presence and technology stock, a more commonly observed pattern is that domestic firms in a cluster gain from the presence of foreign firms in other clusters of the region and region-specific technology stock.

Keywords: Foreign Direct Investment; Technology Spillover; Clusters; Firm location (search for similar items in EconPapers)
JEL-codes: C23 C83 L60 (search for similar items in EconPapers)
Date: 2012-10-01
New Economics Papers: this item is included in nep-cse, nep-geo, nep-sbm and nep-ure
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Citations: View citations in EconPapers (1)

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