Regional concentration of FDI involves trade-offs in post-reform India

Author
Peter Nunnenkamp, Wan-Hsin Liu, Frank Bickenbach
Content Type
Policy Brief
Institution
Columbia Center on Sustainable Investment
Abstract
P. Chidambaram, India's Minister of Finance, claimed that "FDI worked wonders in China and can do so in India." However, China's example may also point to the limitations of foreign direct investment (FDI) liberalization in promoting the host country's economic development. FDI in China is heavily concentrated in the coastal areas, and previous studies have suggested that this has contributed to the increasing disparity in regional income and growth since the late 1970s.
Topic
Development, Economics, International Trade and Finance, Foreign Direct Investment
Political Geography
China, South Asia, India