TY - BOOK
T1 - Graduating to Globalisation: a study of Southern multinationals
AU - Demirbas, Dilek
AU - Panaik, Ila
AU - Shah, Ajay
PY - 2010/2
Y1 - 2010/2
N2 - FDI by firms in developing countries is a recent phenomenon and demands a study of relationship between firm productivity and different modes of globalisation activities. This paper attempts to understand this relationship through ordered probit models, examining two key hypotheses using firm level panel data from India. First, we test whether there are characteristic differences between domestic firms, exporting firms and firms engaging with FDI. Second, we test if FDI is an integral part of the evolution of firms in developing countries. Our results suggest that there are strong differences between domestic firms, exporting firms, and firms that invest abroad, especially in their knowledge investment, indicating the presence of a ladder of quality in graduating to globalisation.
AB - FDI by firms in developing countries is a recent phenomenon and demands a study of relationship between firm productivity and different modes of globalisation activities. This paper attempts to understand this relationship through ordered probit models, examining two key hypotheses using firm level panel data from India. First, we test whether there are characteristic differences between domestic firms, exporting firms and firms engaging with FDI. Second, we test if FDI is an integral part of the evolution of firms in developing countries. Our results suggest that there are strong differences between domestic firms, exporting firms, and firms that invest abroad, especially in their knowledge investment, indicating the presence of a ladder of quality in graduating to globalisation.
KW - outbound FDI
KW - panel data
KW - India
KW - ordered Probit models
M3 - Commissioned report
BT - Graduating to Globalisation: a study of Southern multinationals
PB - National Institute of Public Finance and Policy
CY - New Delhi, India
ER -