Firm Heterogeneity and Choice of Ownership Structure: An Empirical Analysis of German FDI in India

We contribute to the literature on the heterogeneity of multinational enterprises (MNEs) and the relevance of firm characteristics for analyzing the determinants of outward foreign direct investment (FDI). The focus is on the role of firm-level heterogeneity when MNEs decide on the share of ownership in foreign affiliates. We combine two firm-specific datasets on German MNEs with varying equity stakes in Indian affiliates. The impact of firm characteristics on ownership shares is assessed in the context of OLS and fractional logit models, controlling for industry and location characteristics. We show that the effect of several characteristics differs between the establishment of new affiliates by German MNEs and their engagement in already existing Indian firms. Most notably, the productivity of the German parents matters only for ownership shares in new affiliates.multinational enterprises, firm characteristics, Indian locations, German FDI; ownership share

FDI liberalization, firm heterogeneity and foreign ownership: German firm decisions in reforming India

The paper investigates the role of firm-level productivity and industry-level R&D for MNEs' choice of undertaking FDI, and the share of ownership in foreign affiliates. Two firm-specific datasets on German MNEs with varying equity stakes in Indian affiliates are used to account for the two-step decision process. The paper also analyses how German firm decisions were affected by the liberalisation of FDI regulations in India. Results show remarkable differences between the selection and the ownership share equation, and also between the pre-reform and post-reform periods. The evidence clearly reveals the tradeoffs involved in selective FDI approvals and foreign ownership restrictions. --multinational enterprises,firm characteristics,selective FDI approval,German FDI,ownership share,Heckman model

Globalization and the Human Right to Feed Oneself: The impact of the blue revolution on the Food Security of Small-Scale-Fisherpeople in Tamil Nadu

In Indian fisheries you find the situation the Indian Government and other Governments of developing countries aim to achieve also for their agricultural sector: to get high prices for their commodities in the international market and to have unlimited access to these markets. By exporting high value marine products India earns much precious foreign exchange as prawns realize very high prices in the international market and as there are no restrictions for the entry into the markets of the industrialized countries. The quantities of exportable marine products are thus just restricted by the quantities that can be caught and by the demand in the industrialized countries. This situation is almost unchanged during the last three decades. In that time both the value and quantity of marine products exported from India increased considerably. Despite this development the economic status of small-scale fisherpeople in India did not improve much. In most parts of the country the fishing communities belong to the poorest sections of society. They do not only get a neglectable share of the money earned by the export of marine products, very often they are deprived of their resource basis as outsiders tend to see fisheries as a sector they can make easy money in. Economic development for the one means marginalization and destruction of their livelihoods for the others. The way economic development was achieved the fisherpeople became more vulnerable to food insecurity. This structure of vulnerability is additionally overlaid by internal structures and processes as well as by temporal events which might lead to drastic consequences for members of the fishing community as they can not cope easily with such situations like sharp increases in food prices, restricted numbers of days for fishing due to climatic reasons, decrease of fish-catches due to seasonal variations of fish occurrence. Some of these temporal changes are closely connected with the nature of fishing and the fisherpeople created their strategies to cope with them. Changes within the fisheries sector and the inner structure of the fishing community are responsible that these coping strategies are becoming more and more insufficient to protect the members of the fishing community

Poverty, Marginalization and Polarisation: The Example of a South Indian Fishing Community

This presentation is based on a study on economic and political change within a fishing community located in the city of Madras. The research work for this study was done between October 1990 and August 1992. It is no exaggeration to say that within these 22 months India totally changed in many respects. Many of those changes are closely connected to what we are discussing in our meeting: poverty, marginalization and development In some cases these connections are obvious, sometimes they are hidden but nevertheless very much relevant. In his presentation the author tries to connect the lives of fisherpeople in Madras city with changes that happenened outside their spheres of influence. It is not possible to discuss these changes themselves in detail. As they are closely connected with the conceptual frame of the study the most important events have at least to be mentioned briefly

Das Potenzial der Migration aus Indien: Entwicklungen im Herkunftsland, internationale Migrationsbewegungen und Migration nach Deutschland

Migration aus Indien nach Deutschland hat sowohl medial als auch politisch seit den 2000er-Jahren vor allem in Bezug auf die (gesteuerte) Migration qualifizierter und hochqualifizierter Fachkräfte an Bedeutung gewonnen. Die Studie (Forschungsbericht 26) erörtert das aktuelle Potenzial der Migration aus Indien nach Deutschland. Dazu werden diverse Entwicklungen im Herkunftsland Indien, internationale Migrationsbewegungen in andere Zielregionen sowie Charakteristika und Trends der Migration nach Deutschland analysiert. Indien gewinnt hinsichtlich der demografischen und wirtschaftlichen Entwicklung als Herkunftsland potenzieller Migranten an Bedeutung. Daher steht das Schwellenland im Fokus des vierten Bandes der BAMF-Forschungsreihe "Potenziale zukünftiger Migration". Die aktuellen demografischen, sozioökonomischen, wirtschaftlichen, politischen und gesellschaftlichen Bedingungen auf dem vielfältigen Subkontinent weisen vor dem Hintergrund einer zunehmenden menschlichen und wirtschaftlichen "Entwicklung" für wesentliche Teile der 1,25 Mrd. Menschen umfassenden Bevölkerung ambivalente Tendenzen in Bezug auf Umfang, Formen und Destination potenzieller (Re- und Nicht-)Migration hin.Migration to Germany from India has become more significant, both in media terms and politically, since the 2000s, particularly with regard to (managed) migration by qualified and highly-qualified specialists. The study (Research Report 26) discusses current migration potential from India to Germany. To this end, a variety of developments are analysed in India as a country of origin, as are international migration movements to other destination regions, as well as characteristics and trends in migration to Germany. India is becoming more significant as a country of origin for potential migrants in terms of demographic and economic development. This emerging nation therefore forms the focus of the fourth volume in the BAMF's research series entitled "Future Migration Potentials". Against the background of an increasing human and economic "development" affecting large numbers among the population of 1.25 billion people, the demographic, socioeconomic, economic, political and societal conditions on this diverse subcontinent today show ambivalent tendencies with regard to the quantity, forms and destination of potential (re- and non-)migration

Global Initiatives and Higher Education in the Fourth Industrial Revolution

The Fourth industrial Revolution (4IR) is forcing higher education (HE) into a new era where it must either actively and positively contribute to innovation, sustainability, and development or become obsolete and redundant. HE must leave its ivory tower and forge links and partnerships with society, industry, and governing bodies by delivering graduates that are holistically educated and trained to bring positive innovation and change and to address the challenges that humanity is facing in the 21st century