ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Liberalisation, MNE and Productivity of Indian Enterprises

In analysing the impact of FDI spillovers on the productivity of Indian enterprises for the postliberalisation years 1993-2000, this study argues in favour of using an unbalanced (full) panel that takes into account the entry and exit of firms. Furthermore, it also advocates the estimation of separate firm level cross section equations for each year to analyse the possible changes in the values of the spillover coefficients over time. The results show the presence of significant spillover effects from FDI. During the initial years of liberalisation, the spillover effects were modest, but increased sharply later on. Firms with better endowments in terms of productivity and technology benefited from liberalisation and MNE presence. Firms with large productivity gaps became victims.

Liberalisation and Growth of Firms in India

This study analyses the impact of the liberalisation policies on the growth of firms in India. It analyses the inter-firm differences in growth rates over a seven-year period. The basic unit is the firm and the study allows for the entry and exit of firms during the sample period. Further, the authors show that not all firms have benefited from the liberalisation measures. There were gainers and losers. The impact of the determinants on growth has not remained constant over the years but has changed during the process of liberalisation.
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