The role of country-of-origin characteristics for foreign direct investment and technical cooperation in post-reform India

The decisions of foreign investors on technical cooperation versus equity engagements and on the degree of ownership in FDI projects are likely to depend on their relative bargaining position vis-à-vis the host country. We perform negative binominal regressions by making use of a unique dataset on...

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Main Authors: Dreher, Axel (Author) , Nunnenkamp, Peter (Author) , Vadlamannati, Krishna Chaitanya (Author)
Format: Article (Journal)
Language:English
Published: 2013
In: World development
Year: 2012, Volume: 44, Pages: 88-109
ISSN:1873-5991
DOI:10.1016/j.worlddev.2012.09.011
Online Access:Verlag, lizenzpflichtig, Volltext: https://doi.org/10.1016/j.worlddev.2012.09.011
Verlag, lizenzpflichtig, Volltext: http://www.sciencedirect.com/science/article/pii/S0305750X12002252
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Author Notes:Axel Dreher, University of Heidelberg, Germany University of Goettingen, Germany CESifo, Germany IZA, Germany, KOF Swiss Economic Institute, Switzerland; Peter Nunnenkamp, Kiel Institute for the World Economy, Germany and Krishna ChaitanyaVadlamannati, University of Heidelberg, Germany
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Summary:The decisions of foreign investors on technical cooperation versus equity engagements and on the degree of ownership in FDI projects are likely to depend on their relative bargaining position vis-à-vis the host country. We perform negative binominal regressions by making use of a unique dataset on about 24,500 technical cooperation and FDI projects in India by investors from 45 countries of origin over the 1991-2004 period. We find that relative market size, relative financial market development, relative risk, relative endowment of human capital, and previous international experience significantly affect the type of engagement by foreign investors in post-reform India.
Item Description:Available online 23 October 2012
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Physical Description:Online Resource
ISSN:1873-5991
DOI:10.1016/j.worlddev.2012.09.011