Pradhan, Jaya Prakash (2004): FDI spillovers and local productivity growth: evidence from Indian pharmaceutical industry. Published in: Artha Vijnana , Vol. XLIV, No. 3-4 (2002): pp. 317-332.
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The study tests the FDI spillover hypothesis in the Indian Pharmaceutical industry using an unbalanced panel data for a sample of firms over the period 1989-90 to 2000-01. The study estimates firm-specific productive efficiency growth for domestic firms from frontier production function and relates the same to a set of firm-specific attributes along with the variables of foreign presence. The study found that the presence of foreign firms per se may not be important for productivity growth of domestic firms unless it is complemented by the latter’s R&D activity or size. Therefore, the study concludes that policy efforts to encourage R&D and some concentration of size of the domestic firms in the industry may be more desirable than passively liberalizing the FDI policy from the point of view of increasing productive efficiency of local enterprises.
|Item Type:||MPRA Paper|
|Original Title:||FDI spillovers and local productivity growth: evidence from Indian pharmaceutical industry|
|English Title:||FDI spillovers and local productivity growth: evidence from Indian pharmaceutical industry|
|Keywords:||FDI; Productivity; Pharmaceutical Industry|
|Subjects:||L - Industrial Organization > L6 - Industry Studies: Manufacturing > L65 - Chemicals ; Rubber ; Drugs ; Biotechnology
F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms ; International Business
D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity
|Depositing User:||Dr. Jaya Prakash Pradhan|
|Date Deposited:||05. Sep 2009 07:19|
|Last Modified:||26. Apr 2015 01:28|
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