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2007•International Journal of Trade and Global MarketsRequires access

Foreign Direct Investment and spillovers: evidence from Indian manufacturing

Subash Sasidharan, Ananthakrishnan Ramanathan

Open publisher page 38 citations

Abstract

This study is an attempt to empirically examine the spillover effects from the entry of foreign firms using a firm-level data of Indian manufacturing industries. Firm-level data of Indian manufacturing industries is used for the period 1994?2002. We consider both the horizontal and vertical spillover effects of FDI. Consistent with the results of the previous studies, we find no evidence of horizontal spillover effects. On the contrary, we find negative vertical spillover effects.

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What this paper is about

This study is an attempt to empirically examine the spillover effects from the entry of foreign firms using a firm-level data of Indian manufacturing industries. Firm-level data of Indian manufacturing industries is used for the period 1994?2002. We consider both the horizontal and vertical spillover effects of FDI. Consistent with the results of the previous studies, we find no evidence of horizontal spillover effects. On the contrary, we find negative vertical spillover effects.

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OpenAlex reports 38 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

This study is an attempt to empirically examine the spillover effects from the entry of foreign firms using a firm-level data of Indian manufacturing industries. Firm-level data of Indian manufacturing industries is used for the period 1994?2002. We consider both the horizontal and vertical spillover effects of FDI. Consistent with the results of the previous studies, we find no evidence of horizontal spillover effects. On the contrary, we find negative vertical spillover effects.

Key concepts: Spillover effect, Foreign direct investment, Horizontal and vertical, Business, Manufacturing, International economics, Economics, Economic geography

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