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Indian Direct Investment in Developing Countries: Emerging Trends and Development Impacts

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  • Pradhan, Jaya Prakash

Abstract

This study has analyzed the overall and regional trends in Indian direct investment flows into developing region since 1960s and explored various development impacts they have on host developing countries. Evidence tends to indicate that developing region was the initial destination for Indian outward investing firms and continued to receive their attention over time. Developing region bound Indian FDI, which was led by a small group of Indian firms in a few selected developing countries in 1960s–80s, is now giving way to a more extensive pattern with large quantum of outward investment. A large number of Indian firms are undertaking increasing investment activities across different sub‐regional developing groups and for a variety of firm‐specific motivations. The fact that developing region oriented Indian firms are operating in knowledge‐based industries and are undertaking local production activities than simply performing sales promotional functions, their presence could be critical for host developing countries aspiring to build their domestic capability in such technology‐intensive industries.

Suggested Citation

  • Pradhan, Jaya Prakash, 2008. "Indian Direct Investment in Developing Countries: Emerging Trends and Development Impacts," MPRA Paper 12323, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:12323
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    References listed on IDEAS

    as
    1. Pradhan, Jaya Prakash, 2007. "National Innovation System and the Emergence of Indian Information and Software Technology Multinationals," MPRA Paper 12359, University Library of Munich, Germany.
    2. Pradhan, Jaya Prakash, 2005. "Outward Foreign Direct Investment from India: Recent Trends and Patterns," MPRA Paper 12358, University Library of Munich, Germany.
    3. Pradhan, Jaya Prakash, 2003. "Rise of service sector outward foreign direct investment from Indian economy: trends, patterns, and determinants," MPRA Paper 17078, University Library of Munich, Germany.
    4. Jaya Prakash Pradhan, "undated". "Growth of Indian Multinationals in the World Economy: Implications for Development," Working Papers 0704, Institute for Studies in Industrial Development (ISID).
    5. Jaya Prakash Pradhan, 2004. "The determinants of outward foreign direct investment: a firm-level analysis of Indian manufacturing," Oxford Development Studies, Taylor & Francis Journals, vol. 32(4), pages 619-639.
    6. Pradhan, Jaya Prakash & Abraham, Vinoj, 2004. "Overseas Mergers and Acquisitions by Indian Enterprises: Patterns and Motivations," MPRA Paper 17076, University Library of Munich, Germany.
    7. Pradhan, Jaya Prakash, 2006. "Quality of Foreign Direct Investment, Knowledge Spillovers and Host Country Productivity: A Framework of Analysis," MPRA Paper 12336, University Library of Munich, Germany.
    8. Pradhan, Jaya Prakash, 2007. "Trends and Patterns of Overseas Acquisitions by Indian Multinationals," MPRA Paper 12404, University Library of Munich, Germany.
    9. Lall, Rajiv, 1986. "Third world multinationals : The characteristics of Indian firms investing abroad," Journal of Development Economics, Elsevier, vol. 20(2), pages 381-397, March.
    10. Dilek Aykut & Andrea Goldstein, 2006. "Developing Country Multinationals: South-South Investment Comes of Age," OECD Development Centre Working Papers 257, OECD Publishing.
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    Citations

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    Cited by:

    1. Rabin Hattari & Ramkishen Rajan, 2010. "India as a Source of Outward Foreign Direct Investment," Oxford Development Studies, Taylor & Francis Journals, vol. 38(4), pages 497-518.
    2. Pradhan, Jaya Prakash, 2008. "Overcoming Innovation Limits through Outward FDI: The Overseas Acquisition Strategy of Indian Pharmaceutical Firms," MPRA Paper 12362, University Library of Munich, Germany.
    3. Hermann Sebastian Dehnen & Jan H. van Dinther & Norbert Koubek, 2013. "From emerging economies toward the Emerging Triad," Schumpeter Discussion Papers SDP13008, Universitätsbibliothek Wuppertal, University Library.
    4. Anwar Mohammad Amir, 2014. "Indian foreign direct investments in Africa: a geographical perspective," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 26(26), pages 1-15, December.
    5. Russell Davidson, 2007. "Bootstrapping econometric models (in Russian)," Quantile, Quantile, issue 3, pages 13-36, September.
    6. Pradhan, Jaya Prakash, 2008. "India’s Emerging Multinationals in Developed Region," MPRA Paper 12361, University Library of Munich, Germany.
    7. Nagesh Kumar, 2013. "Trade, Capital Flows and the Balance of Payments," Development Papers 1303, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office.

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    More about this item

    Keywords

    FDI; India; Developing Countries;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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