This paper examines the spillover effect of foreign direct investment (FDI) and determinant of FDI across Indian manufacturing industries. The result, based on two-equation model that allows for the two-way link between labour productivity of locally owned industries and foreign presence provide...

The present study provides some empirical evidence for the export spillover effect examining the case of an emerging market economy, namely India, using firm level data for the period 1994-2006. We disentangle different spillover channels, namely the demonstration effect, the imitation effect...

Foreign Direct Investment (FDI) has been an area that has invoked interest both among researchers and policy makers. FDI is one of those areas, which has benefits both for the host country and the home country. Multinational corporations or foreign firms are supposed to have frontier technology,...

Demand for skilled labour from multinational firms is also high which might lead to movement of skilled labour from domestic firms. To prevent such movement domestic firms might feel the pressure to increase their wages. Also, productivity spillovers from foreign firms may increase productivity...