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Impact of Foreign Direct Investment on Export Performance in India
| Content Provider | Semantic Scholar |
|---|---|
| Author | Prasanna, N. |
| Copyright Year | 2010 |
| Abstract | In a globalizing world, export success can serve as a measure for the competitiveness of a country’s industries and lead to faster growth. Recently, a much optimistic view on the role of Foreign Direct Investment (FDI) on export performance in the host country has evolved. The Government of India moved in this direction in mid1991 which has increased the FDI inflow into India. Viewing the increasing trend of FDI inflows into India, this study explores the impact of FDI inflows on the export performance of India. This study finds that the impact of FDI inflows on export performance is significantly positive. The study also suggests that the policy regarding domestic efforts to enhance manufacturing exports needs reassessment in line with the FDI policy framework in order to reap maximum and long-term benefits.a of domestic enterprise-led and FDI-led export development. Neither strategy is easy (UNCTAD 1999). The Government of India saw in FDI a potential non-debt creating source of finance and a bundle of assets, viz., capital, technology, market access (foreign), employment, skills, management techniques, and environment (cleaner practices), which could solve the problems of low income growth, shortfall in savings, investments and exports and unemployment. It was argued that FDI would also help India in the expansion of production and trade and increase opportunities to enhance the benefits that could be drawn from greater integration with the world economy. In other words, FDI would broaden the opportunities for India to participate in international specialization and other gains from trade. Besides FDI, export orientation has also been hailed as an engine of growth. The Newly Industrialized Economies’ (NIEs: Singapore, Hong Kong and Taiwan) successful economic development has been attributed to these economies’ success in pursuing an exportled growth strategy (Kohpaiboon 2007). But more importantly, it was part of the IMF and World Bank condition that the Government of India must resort to macro-economic reforms and structural adjustments in order to be bailed out from the severe economic crisis in 1990-91 (UNCTAD 1999). So, in mid-1991 the Government of India resorted to full-fledged macro-economic reforms and structural adjustments with the |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://www.krepublishers.com/02-Journals/JSS/JSS-24-0-000-10-Web/JSS-24-1-000-10-Abst-PDF/JSS-24-1-65-10-632-Prasanna-N/JSS-24-1-65-10-632-Prasanna-N-Tt.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
