FDI Liberalisation, Firm Heterogeneity and Foreign Ownership: German Firm Decisions in Reforming India.

The paper investigates the role of firm-level productivity and industry-level R&D for multinational enterprises' (MNEs') choice of undertaking foreign direct investment (FDI), and the share of ownership in foreign affiliates. Two firm-specific datasets on German MNEs with varying equity stakes in In...

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Publicado en:Journal of Development Studies Vol. 46; no. 8; pp. 1367 - 1385
Autores principales: Görg, Holger, Mühlen, Henning, Nunnenkamp, Peter
Formato: Artículo
Publicado: Taylor & Francis Ltd Sep2010
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      tig:
        atl: FDI Liberalisation, Firm Heterogeneity and Foreign Ownership: German Firm Decisions in Reforming India.
      aug:
        au:
          Görg, Holger
          Mühlen, Henning
          Nunnenkamp, Peter
        affil:
          Kiel Institute for the World Economy, Germany
          Christian-Albrechts-University, Germany
          University of Bochum, Germany
      su:
        Foreign investments
        Ecological heterogeneity
        Labor productivity
        Industry & the environment
        Industries
        India
      sug:
        subj:
          India
          Foreign investments
          Ecological heterogeneity
          Labor productivity
          Industry & the environment
          Industries
      ab: The paper investigates the role of firm-level productivity and industry-level R&D for multinational enterprises' (MNEs') choice of undertaking foreign direct investment (FDI), and the share of ownership in foreign affiliates. Two firm-specific datasets on German MNEs with varying equity stakes in Indian affiliates are used to account for the two-step decision process. The paper also analyses how German firm decisions were affected by the liberalisation of FDI regulations in India. Results show remarkable differences between the selection and the ownership share equation, and also between the pre-reform and post-reform periods. The evidence clearly reveals the trade-offs involved in selective FDI approvals and foreign ownership restrictions.
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    language: English
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