Kayam, Saime Suna and Ecer, Sencer and Gupta, R (2011): Social determinants of intra-regional dispersion of FDI in India.
Download (256kB) | Preview
The foreign direct investment (FDI) strategy has imbued India’s once stagnant industrial sector with capital and job opportunity. However, as India’s GDP grows ever larger, there is a concern that the growth within the country is not evenly distributed and may in fact exacerbate current economic disparities. This paper seeks to look at potential avenues poorer states can take to attract FDI if they choose to as a method to stay competitive within the country. Our hypothesis is that measures such as power rating (as a proxy for infrastructure), literacy, and minimum wage would be highly significant related to inward FDI.
|Item Type:||MPRA Paper|
|Original Title:||Social determinants of intra-regional dispersion of FDI in India|
|English Title:||Social determinants of intra-regional dispersion of FDI in India|
|Keywords:||foreign direct investment; regional diversification; socioeconomic factors|
|Subjects:||R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R58 - Regional Development Planning and Policy
C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models
F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements
|Depositing User:||Saime Kayam|
|Date Deposited:||31. May 2012 12:56|
|Last Modified:||15. Feb 2013 11:45|
Ahluwalia, M. (2002), Economic reforms in India since 1991: Has Gradualism Worked?, Journal of Economic Perspectives, 16, pp.67-88.
Altomonte, C. (2002) Transition bursts: Market potential and the location choices of multinational enterprises. 29th EARIE Annual Conference of the European Association for Research in Industrial Economics, 5-8 September, Madrid.
Baltagi, B.H., P. Egger and M. Pfaffermayr (2007) Estimating models of complex FDI: Are there third-country effects? Journal of Econometrics, 140, pp. 260-281.
Billington, N. (1999) The location of foreign direct investment: An empirical analysis, Applied Economics, 31, pp. 65-76.
Blonigen, B.A., R.B. Davies, G.R.Waddell and H.T. Naughton (2007) FDI in space: Spatial autoregressive relationships in foreign direct investment. European Economic Review, 51, pp.1303-1325.
Bradshaw, M.J. (1997) The geography of foreign investment in Russia, 1993-1995, Tijdschrift voor Economische en Sociale Geografie, 88 (1): 77-84.
Broadman, H. and F. Recanatini (2001) “Where has all the foreign investment gone in Russia?” World Bank Policy and Research Working Paper No. 2640, Washington DC: The World Bank.
Broadman, H. G. and X. Sun (1997) The Distribution of Foreign Direct Investment in China, The World Economy, 20, pp. 339-361.
Carstensen K. and F.Toubal (2004) Foreign direct investment in Central and Eastern European Countries: A dynamic panel analysis. Journal of Comparative Economics, 32, pp. 3-22.
Chakrabarti, A. (2003) A theory of the spatial distribution of foreign direct investment, International Review of Economics and Finance, 12, pp. 149-169.
Cieslik A. and M. Ryan (2004) Explaining Japanese direct investment flows into an enlarged Europe: A comparison of gravity and economic potential approaches. Journal of the Japanese and International Economies, 18, pp.12-37.
Coughin, C. C. and E. Segev (2000) Foreign Direct Investment in China: a Spatial Econometric Study, World Economy, 23 (1), pp.1-23.
Coughlin,C. C., J. V. Terza, and V. Arromdee (1991) State Characteristics and the Location of Foreign Direct Investment within the United States, Review of Economics and Statistics, 73, pp. 675-683
Government of India, Labour Bureau website.
Government of India, Ministry of Home Affairs,Census of India 2001.
Government of India, Ministry of Power website.
Head K. and T. Mayer (2004) Market potential and the location of Japanese investment in the European Union. Review of Economics and Statistics, 86, pp.959-972.
Head K., J. Ries and D. Swenson (1995) Agglomeration benefits and location choice: Evidence from Japanese manufacturing investments in the United States, Journal of International Economics, 38, pp.223-247.
Hoechle, D. (2007) Robust Standard Errors for Panel Regressions with Cross-Sectional Dependence, Stata Journal, 7, pp. 1–31.
Iwasaki, I and K. Suganuma (2005) Regional Distribution of Foreign Direct Investment in Russia, Post-Communist Economies, 17, pp. 153-172.
Kishore, A. (2002) Towards an Indian Approach to Globalisation, in D. Gruen, T. O'Brien and J. Lawson (eds.) Globalisation, Living Standards and Inequality: Recent Progress and Continuing Challenges, Reserve Bank of Australia.
Kuznets, S., 1955. Economic growth and income inequality. American Economic Review, 1, pp. 1-28.
Ledyaeva, S. (2009) Spatial Econometric Analysis of Foreign Direct Investment Determinants in Russian Regions, World Economy, 32, pp. 643–666.
Manaenkov, D. (2000) What determines the region of location of an FDI project? An empirical assessment, Working Paper BSP/36 E, Moscow: New Economic School.
Morris, S. (2004) A Study of the Regional Determinants of Foreign Direct Investments in India, and the Case of Gujarat, Indian Institute of Management, Ahmedabad Working Paper No. 2004/03/07.
Newey, W. K. and K. D. West (1987) Hypothesis Testing with Efficient Method of Moments Estimation, International Economic Review, 28, pp. 777-787.
Nunnenkamp, P. and R. Stracke (2008) Foreign Direct Investment in Post-Reform India: Likely To Work Wonders For Regional Development? Journal Of Economic Development, 33 (2),55-84.
Sachs, J. D., Bajpai, N., and Ramiah, A. (2002) Understanding Regional Economic Growth in India, CID Working Paper No. 88. Center for International Development at Harvard University, Cambridge.
Sen, A. 1990. More than 100 Million Women are Missing. New York Review of Books, 20, pp. 61-66.