Subramanian, K and Chakrabarti, R and Meka, S
(2011)
Localization of FDI flows: Evidence on Infrastructure as a Critical Determinant.
Working Paper.
SSRN.
(Unpublished)
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Abstract
The localization of Foreign Direct Investment (FDI) to a few economies represents a puzzling aspect of international business. We study the provision of public infrastructure as a determinant of such localization. We employ unique data at the district level in India. We identify using variation: (i) among sectors within a district depending upon the sector’s propensity to attract FDI at the national level; and (ii) FDI into surrounding districts. We find that FDI inflows remain insensitive to changes in infrastructure till a threshold is reached; thereafter, FDI inflows increase steeply with an increase in infrastructure. This non-linear effect potentially explains why FDI remains restricted to a few countries.
Affiliation: |
Indian School of Business
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ISB Creators: |
ISB Creators | ORCiD |
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Subramanian, K | UNSPECIFIED |
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Item Type: |
Monograph
(Working Paper)
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Uncontrolled Keywords: |
BRIC, District, Infrastructure, FDI, India, International Corporate Finance, International Business, MNE |
Subjects: |
Finance |
Depositing User: |
Ilayaraja M
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Date Deposited: |
09 Jun 2019 11:35 |
Last Modified: |
09 Jun 2019 19:18 |
URI: |
http://eprints.exchange.isb.edu/id/eprint/1053 |
Publisher URL: |
http://dx.doi.org/10.2139/ssrn.1712185 |
Related URLs: |
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