The presence of foreign firms might lead to movement of skilled labor from domestic firms. To prevent such movement, domestic firms could increase their wages. Also, productivity spillovers from foreign firms may increase the productivity of domestic firms and possibly the wages given in...

Empirical evidence suggests that multinationals exhibit greater productivity than local firms. Emergence of Indian multinationals in the last decade raises an interesting question. Do Indian multinationals have greater productivity than foreign multinationals in India? Our results indeed suggest...

Foreign direct investment (FDI) has benefits both for the host country and the home country. Multinational corporations or foreign firms are supposed to have frontier technology, which are expected to have spillover effects on local firms when they enter a country. Most studies on Indian...

Empirical evidence suggests that multinationals exhibit greater productivity than local firms. Emergence of Indian multinationals in the last decade raises an interesting question. Do Indian multinationals have greater productivity than foreign multinationals in India? Our results indeed suggest...