Country Origin of Foreign Direct Investment in Indian Manufacturing and Its Impact on Productivity of Domestic Firms

Goldar, Bishwanath; Banga, Karishma

doi:10.1007/978-981-15-3611-3_2

Cited by 13 publications

(10 citation statements)

References 44 publications

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“…In studies on TFP in Indian manufacturing, based on firm-level or plant-level panel data, the Levinsohn–Petrin method has been commonly applied. Examples of such application to firm level data include Topalova and Khandelwal (2011), De and Nagaraj (2014), Goldar and Banga (2017), Satpathy et al (2017), and Goldar et al (2018, 2019). The Levinsohn–Petrin methodology for measuring TFP has been applied to plant-level panel dataset prepared from unit-level data of ASI in Sivadasan (2006, 2009), Gupta and Veeramani (2015) and Sahu and Sharma (2016).…”

Section: Model Data and Variables And Regression Resultsmentioning

confidence: 99%

“…1. For a review of literature, see Goldar (2014). Some relatively more recent studies not covered in that review include Kathuria et al (2013), Das (2016), Mitra et al (2014, 2016), De Loecker et al (2016), Goldar and Suresh (2017), Mukherjee (2017, 2018), Goldar and Banga (2017), Satpathy et al (2017), Goldar and Kumari (2018), Khanna and Sharma (2018a, 2018b), Maiti (2019) and Goldar et al (2019). …”

Section: Notesmentioning

confidence: 99%

“…Almost invariably, data have been drawn from the Annual Survey of Industries (ASI), but there are exceptions (Goldar and Kumari, 2018). Studies on factors influencing TFP in Indian manufacturing based on firm-level data include Topalova and Khandelwal (2011), Ranjan and Raychaudhuri (2011), De and Nagaraj (2014), Goldar and Banga (2017), Satpathy et al (2017), Khanna and Sharma (2018b) and Goldar et al (2019). The studies on determinants of TFP based on plant-level data drawn from ASI include Sivadasan (2006, 2009), Sharma and Singh (2013), Gupta and Veeramani (2015) and Goldar and Suresh (2017).…”

Section: Notesmentioning

confidence: 99%

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Services input and productivity in Indian manufacturing plants

Goldar

2019

IGDR

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Purpose The purpose of this paper is to analyse econometrically determinants of total factor productivity (TFP) in Indian manufacturing plants with a focus on the influence of services input on productivity. Design/methodology/approach Plant-level data drawn from Annual Survey of Industries for the years 1998-1999 to 2012-2013 are used for the estimation of TFP at plant-level by applying the Levinsohn–Petrin methodology. Econometric models are estimated to explain variations in plant-level TFP. The explanatory variables used are services input intensity (split into manufacturing services purchased and other services), the share of information communication technology (ICT) assets in total fixed capital stock, the share of contract workers in total workers and the share of imported materials out of total materials used, with plant size taken as a control variable. Model estimation is done by applying the fixed effects model. Findings Econometric results indicate that services input and ICT intensity have a significant positive effect on productivity of manufacturing plants in India. Use of imported materials raises productivity, whereas the use of contract workers in place of regular workers tends to lower productivity. The impact of imported materials on TFP of manufacturing plants seems to be relatively bigger for labour-intensive, low technology industries. Originality/value Care has been taken for TFP measurement. Analysis of the impact of services input on TFP has been undertaken for Indian manufacturing using plant-level data for the first time.

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Section: Model Data and Variables And Regression Resultsmentioning

confidence: 99%

Section: Notesmentioning

confidence: 99%

Section: Notesmentioning

confidence: 99%

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Services input and productivity in Indian manufacturing plants

Goldar

2019

IGDR

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“…Foreign firms can significantly contribute, directly or indirectly, in innovative activities in the host country (Lall, 1993) to adjust and adapt to its ecosystem. Kathuria (2001) and Goldar and Banga (2018) show evidence of existence of positive spillovers from the presence of foreign-owned firms.…”

Section: Data Methodology and Variable Constructionmentioning

confidence: 95%

Technology Exports and Global Value Chain Linkages: A Comparative Sectoral Study of India

Arora

Siddiqui

2020

The Indian Economic Journal

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Technology being incorporated in products, intermediate inputs and processes varies from sector to sector. Using annual time series data (1991–2017), a comparative performance of two sectors, namely, a high-tech (electronics and hardware) and low-tech (textiles and clothing), is undertaken to elaborate on the linkages between trade and technology. The empirical analysis in the form of auto regressive distributive lag (ARDL) testing approach to co-integration concludes that there is strong evidence of positive long-run relationship between extensive margin, gross fixed capital formation and revealed comparative advantage (RCA) with gross exports (GE) for the textile and clothing sector. Also, there runs a bidirectional Granger causality between RCA and GE and unidirectional Granger causality from GE to extensive and intensive margins and production value. However, there is a lack of evidence of long-run co-integration in the electronics sector. Still, a short-run positive causal relationship exists between lagged values of GE, intensive margin and production with GE. Together, the impact of these variables on the sector’s export performance varies, thus posing a challenge as well as providing a direction for the policies to reap further from this potential nexus of trade, investment and global value chains.

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“…For the USA, the potential Economic Prosperity Network alliance countries are Australia, Japan, India, New Zealand, South Korea and Vietnam (Chadha, 2020). Though India possesses manufacturing capabilities in most of the sectors, the country's integration into GVCs has been low (Athukorala, 2014;Baldwin, 2011;Goldar & Banga, 2020). China has emerged as the largest gainer of the process of production fragmentation; since the early 1990s, it has attracted substantial investment into the manufacturing sector via GVCs, whereas India's manufacturing sector's contribution to the GDP has remained sticky at around 17% for more than two decades.…”

Section: Introductionmentioning

confidence: 99%

Analysing Opportunities for India in Global Value Chains in Post COVID-19 Era

Bagaria

2021

Foreign Trade Review

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In recent years, trade in intermediate goods has increased manifold with the emergence of global value chains (GVCs). China has emerged as one of the leading countries in the whole GVC network; many countries, including the USA, are heavily dependent on China for the intermediates in the manufacturing sector. The outbreak of COVID-19 and the subsequent lockdowns in many countries, including China, have disrupted the supply in GVCs. This situation has led to the search for alternative markets for intermediates for the sustainable-production process. This study looks at how India can be an alternative avenue for the USA in place of China in the GVC network. It investigates the extent of participation of the countries under study in the GVCs and the gains resulting from it. The main focus of the research is to determine the emerging opportunities for India in GVCs, through correlating the USA industries which are vulnerable to disruption in GVCs as caused by China to those industries of India in which India enjoys a comparative advantage. The analysis reveals that in the ‘textiles, wearing apparel, leather and related products’ and ‘chemicals and non-metallic mineral products’ industries, India could be a replacement of China for the USA. JEL Codes: F10, F13, F15

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Country Origin of Foreign Direct Investment in Indian Manufacturing and Its Impact on Productivity of Domestic Firms

Cited by 13 publications

References 44 publications

Services input and productivity in Indian manufacturing plants

Services input and productivity in Indian manufacturing plants

Technology Exports and Global Value Chain Linkages: A Comparative Sectoral Study of India

Analysing Opportunities for India in Global Value Chains in Post COVID-19 Era

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