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Liberalization of FDI in Retail Services: A Fast Death Instrument for India?

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  • Lakatos, Csilla
  • Fukui, Tani

Abstract

In order to address the significant increase in importance of FDI and of MNCrelated policies, we develop an extended GTAP model and associated global database that accounts for both foreign direct investment and multinational companies differentiated by the region of ownership. The model is calibrated on the GTAP v8 database complemented with global foreign affiliate statistics data described in detail in Fukui and Lakatos (2012) and the FDI stocks data Boumellassa et al. (2007). To illustrate the model’s behaviour, we examine the recent policy debate with respect to allowing foreign direct investment in multibrand retailing in India.

Suggested Citation

  • Lakatos, Csilla & Fukui, Tani, 2012. "Liberalization of FDI in Retail Services: A Fast Death Instrument for India?," Conference papers 332222, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332222
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    References listed on IDEAS

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    1. Lejour, Arjan & Rojas-Romagosa, Hugo & Verweij, Gerard, 2008. "Opening services markets within Europe: Modelling foreign establishments in a CGE framework," Economic Modelling, Elsevier, vol. 25(5), pages 1022-1039, September.
    2. Drusilla K. Brown & Robert M. Stern, 2001. "Measurement and Modeling of the Economic Effects of Trade and Investment Barriers in Services," Review of International Economics, Wiley Blackwell, vol. 9(2), pages 262-286, May.
    3. Sjoerd Beugelsdijk & Jean-François Hennart & Arjen Slangen & Roger Smeets, 2010. "Why and how FDI stocks are a biased measure of MNE affiliate activity," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(9), pages 1444-1459, December.
    4. Arjan Lejour & Paul Veenendaal & Gerard Verweij & Nico van Leeuwen, 2006. "Worldscan; a model for international economic policy analysis," CPB Document 111, CPB Netherlands Bureau for Economic Policy Analysis.
    5. Javorcik, Beata S. & Li, Yue, 2013. "Do the biggest aisles serve a brighter future? Global retail chains and their implications for Romania," Journal of International Economics, Elsevier, vol. 90(2), pages 348-363.
    6. Mathew Joseph & Nirupama Soundararajan & Manisha Gupta & Sanghamitra Sahu, 2008. "Impact of Organized Retailing on the Unorganized Sector," Macroeconomics Working Papers 22167, East Asian Bureau of Economic Research.
    7. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June.
    8. Mathew Joseph, 2008. "Impact of Organized Retailing on the Unorganized Sector," Working Papers id:1672, eSocialSciences.
    9. repec:bla:reviec:v:9:y:2001:i:2:p:262-86 is not listed on IDEAS
    10. Fukui, Tani & Csilla Lakatos, 2012. "A Global Database of Foreign Affiliate Sales," GTAP Research Memoranda 4009, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
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