IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/88992.html
   My bibliography  Save this paper

India's Recent Inward Foreign Direct Investment: An Assessment

Author

Listed:
  • KS, Chalapati Rao
  • Dhar, Biswajit

Abstract

Most often the reported FDI flows are accepted unquestioningly and are analysed and interpreted in a simplistic manner in spite of their many nuances. The discovery of some serious limitations and specific features of India’s FDI inflows adds a hitherto little discussed dimension which impacts the understanding of the flows significantly. The study, India’s Recent Inward Foreign Direct Investment: An Assessment, published in July 2018, vividly explains the various shortcomings and special features of the data using multiple examples and case studies and demonstrates that the annual aggregates cannot provide adequate guidance regarding the year-to-year changes. Nor do they truly reflect capacity creation in the economy. The problem turns out to be more acute at the sectoral level. The study conveys a strong message that the reporting mechanism and analysis have to be reshaped drastically in order to provide reliable guidance to policymakers and other national and international users. It could provide a template for understating the inflows into developing countries, in general.

Suggested Citation

  • KS, Chalapati Rao & Dhar, Biswajit, 2018. "India's Recent Inward Foreign Direct Investment: An Assessment," MPRA Paper 88992, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:88992
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/88992/1/MPRA_paper_88992.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cohen, Stephen D., 2007. "Multinational Corporations and Foreign Direct Investment: Avoiding Simplicity, Embracing Complexity," OUP Catalogue, Oxford University Press, number 9780195179361.
    2. Joseph E. Stiglitz, 2016. "The state, the market, and development," WIDER Working Paper Series wp-2016-1, World Institute for Development Economic Research (UNU-WIDER).
    3. Joseph E. Stiglitz, 2016. "The state, the market, and development," WIDER Working Paper Series 001, World Institute for Development Economic Research (UNU-WIDER).
    4. Kojima, Kiyoshi, 1975. "International Trade and Foreign Investment : Substitutes or Complements," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 16(1), pages 1-12, June.
    5. Sauvant, Karl P., 2017. "Beware of FDI statistics!," Columbia FDI Perspectives 215, Columbia University, Columbia Center on Sustainable Investment (CCSI).
    6. Lall, Sanjaya & Narula, Rajneesh, 2004. "FDI and its role in economic development: Do we need a new agenda?," Research Memorandum 019, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    7. K, S Chalapati Rao & Dhar, Biswajit, 2011. "India's FDI Inflows: Trends and Concepts," MPRA Paper 29153, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aparna Sawhney & Rashmi Rastogi, 2019. "FDI in Indian Manufacturing: Whither high-tech industries?," Economics Bulletin, AccessEcon, vol. 39(3), pages 2192-2209.
    2. Halaszovich, Tilo F. & Kinra, Aseem, 2020. "The impact of distance, national transportation systems and logistics performance on FDI and international trade patterns: Results from Asian global value chains," Transport Policy, Elsevier, vol. 98(C), pages 35-47.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joseph E. Stiglitz, 2016. "The Theory of Credit and Macro-economic Stability," NBER Working Papers 22837, National Bureau of Economic Research, Inc.
    2. Anthony Frank Julies, 2024. "An Alternative Approach to Parliamentary Oversight of Sovereign Guarantees in South Africa: ESKOM as a Polar Case Study," International Journal of Sustainable Economies Management (IJSEM), IGI Global, vol. 12(1), pages 1-27, January.
    3. Augustin Kwasi Fosu & Dede Woade Gafa, 2020. "Development Strategies for the Vulnerable Small Island Developing States (SIDS)," Working Papers 202073, University of Pretoria, Department of Economics.
    4. Fanglei Wang & Jianbo Gao & Feiyan Liu, 2024. "Unlocking Africa’s development potential: insights from the perspective of global hierarchy and competition," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.
    5. Ismail Doga Karatepe & Christoph Scherrer, 2019. "Collective Action as a Prerequisite for Economic and Social Upgrading in Agricultural Production Networks," Agrarian South: Journal of Political Economy, Centre for Agrarian Research and Education for South, vol. 8(1-2), pages 115-135, April.
    6. Kalim Siddiqui, 2015. "Foreign Capital Investment into Developing Countries: Some Economic Policy Issues," Research in World Economy, Research in World Economy, Sciedu Press, vol. 6(2), pages 14-29, June.
    7. Daniel Assamah & Shaoyu Yuan, 2024. "Greenfield investment and job creation in Ghana: a sectorial analysis and geopolitical implications of Chinese investments," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-11, December.
    8. Giuliani, Elisa & Martinelli, Arianna & Rabellotti, Roberta, 2016. "Is Co-Invention Expediting Technological Catch Up? A Study of Collaboration between Emerging Country Firms and EU Inventors," World Development, Elsevier, vol. 77(C), pages 192-205.
    9. Anthony Black, 2009. "Location, Automotive Policy, and Multinational Strategy: The Position of South Africa in the Global Industry since 1995," Growth and Change, Wiley Blackwell, vol. 40(3), pages 483-512, September.
    10. Thorbecke, Willem & Salike, Nimesh, 2011. "Understanding Foreign Direct Investment in East Asia," ADBI Working Papers 290, Asian Development Bank Institute.
    11. Harutyunyan, Artur & Janda, Karel, 2022. "Multinationals and Sustainable Attitude to Nutrition and Eating Habits," EconStor Preprints 261282, ZBW - Leibniz Information Centre for Economics.
    12. Tekin, Rıfat Barış, 2012. "Economic growth, exports and foreign direct investment in Least Developed Countries: A panel Granger causality analysis," Economic Modelling, Elsevier, vol. 29(3), pages 868-878.
    13. Hansen, Michael W. & Pedersen, Torben & Petersen, Bent, 2009. "MNC strategies and linkage effects in developing countries," Journal of World Business, Elsevier, vol. 44(2), pages 121-130, April.
    14. Xiaohui Liu & Chang Shu, 2003. "Determinants of Export Performance: Evidence from Chinese Industries," Economic Change and Restructuring, Springer, vol. 36(1), pages 45-67, March.
    15. Patrycja Chodnicka & Renata Karkowska & Malgorzata Olszak (ed.), 2014. "Towards contemporary issues in the financial system," Book, University of Warsaw, Faculty of Management, number 07, June.
    16. Haoyuan Ding & Xiao Li & Jiezhou Ying, 2023. "Anti‐dumping Policies and International Portfolio Allocation: The View from the Global Funds," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(2), pages 58-83, March.
    17. Basant, Rakesh & Mishra, Pulak, 2016. "Trends in Strategies and Performance of the Indian Corporate Sector What has changed in two decades of economic reforms?," IIMA Working Papers WP2016-03-31, Indian Institute of Management Ahmedabad, Research and Publication Department.
    18. Raphaël Chiappini, 2016. "Do overseas investments create or replace trade? New insights from a macro-sectoral study on Japan," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(3), pages 403-425, June.
    19. NPG Samantha & Liu Haiyun, 2018. "Does Inward Foreign Direct Investment Promote Export? Empirical Evidence from Sri Lanka," Business and Economic Research, Macrothink Institute, vol. 8(3), pages 1-18, September.
    20. Rajneesh Narula, 2015. "The Importance of Domestic Capabilities for FDI-assisted Development: Lessons from Asia and Latin America," John H Dunning Centre for International Business Discussion Papers jhd-dp2015-05, Henley Business School, University of Reading.

    More about this item

    Keywords

    FDI; India; Make in India; RBI; Foreign Direct Investment; Data issues; OECD; UNCTAD; World Bank; Industrial Policy; Repatriation; Private Equity; DIPP; BoP; Remittanes;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F3 - International Economics - - International Finance
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:88992. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.