4 research outputs found
The export-diversifying impact of Japanese and US foreign direct investments in the Indian manufacturing sector
The paper highlights the export-diversifying impact of foreign direct investment (FDI) in a developing country. FDI may lead to export diversification in the host country if it positively affects the export intensity of industries that have a low share in world exports. Indirectly, FDI may encourage export diversification through spillover effects: that is, the presence of FDI in an industry may increase the export intensity of domestic firms. The empirical results for the Indian economy in the post-liberalisation period show that FDI from the US has led to diversification of India's exports, both directly and indirectly. However, Japanese FDI has had no significant impact on India's exports. Journal of International Business Studies (2006) 37, 558–568. doi:10.1057/palgrave.jibs.8400207
The role of labour cost in the location choices of Japanese investors in China
This article attempts to reconcile previous conflicting findings about the effects of labour cost on the location decisions of foreign investors in China. A conditional logit model is calibrated with its compatible disaggregated firm-level Japanese FDI data. It is hypothesised that previous counter-intuitively positive relationships between labour cost and incoming FDI in China may result from the failures to properly control spatial inflation differentials, labour quality, and quality of life. A Hausman-McFadden test is also conducted to test the robustness of the calibrated models. Copyright (c) 2006 the author(s). Journal compilation (c) 2006 RSAI.