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Federalism and Foreign Direct Investment: How Political Affiliation Determines the Spatial Distribution of FDI – Evidence from India

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  • Chanchal Kumar Sharma

Abstract

This paper links the foreign economic engagement of India’s states with the literature on federalism, thereby contributing to an understanding of the political economy of FDI in- flows in a parliamentary federal system. More specifically, it studies subnational govern- ments’ international engagements to attract foreign direct investment (FDI) and investi- gates whether the political affiliations of states’ chief ministers and parliamentarians de- termine the spatial distribution of FDI across the Indian states, correcting for the influence of per capita income, population density, urbanisation, infrastructure, policy regime, and human development. [GIGA Working papers 307/2016].

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  • Chanchal Kumar Sharma, 2018. "Federalism and Foreign Direct Investment: How Political Affiliation Determines the Spatial Distribution of FDI – Evidence from India," Working Papers id:12407, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:12407
    Note: Institutional Papers
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