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

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Markets and Institutions: A Transactions Cost Approach

Markets and Institutions: A Transactions Cost Approach Evolution of Markets and Institutions: A Study of an Emerging Economy by Murali Patibandla; Routledge, London and New York, 2006; pp x-xvi + 345,

Optimising FDI Benefits

Understanding FDI Assisted Economic Development edited by Rajneesh Narula and Sanjaya Lall; Routledge, London and New York, 2006;
N S SIDDHARTHAN This book is dedicated to Sanjaya Lall (1940-2005) and was published soon after his death. The book was earlier published as a special issue of The European Journal of Development Research. Sanjaya Lall was professor of development economics at the University of Oxford and a leading scholar in the areas of foreign direct investment (FDI), multinational enterprises (MNEs), technology transfer and technological capability. His phenomenal productivity resulted in the publication of more than 33 books and about 75 papers in refereed professional journals. He was the course director for MSc in economics for development at Oxford university. He also acted as an advisor or consultant to a large number of international organisations that included the World Bank, IFC, UNCTAD, ILO, UNIDO, FAO, ADB, ESCAP and EC. I had the privilege of collaborating with him in the early 1980s that resulted in the publication of two papers

Business Environment, Investment Climate and FDI

The business environment for attracting investment depends on physical and administrative (government) infrastructure. An exclusive emphasis on physical infrastructure, labour laws, fiscal and monetary policies might not yield the desired results. Examined here is evidence that shows the significant negative impact of bad governance and corruption on attracting investment.

Perspectives on Indian Industries

of a tea plant is about five years and it takes Perspectives on Indian about seven years for the plant to attain full maturity. The average life of a plant in India is about 50-60 years. Therefore, quick Industries The Structure of Indian Industry edited by Subir Gokarn, Anindya Sen, and Rajendra R Vaidya; Oxford University Press, New Delhi, pp i-xxi, 1-366, Rs 645.

Globalisation: Productivity, Efficiency and Growth

and Growth An Overview N S SIDDHARTHAN IIIIIIntroduction IntroductionIntroductionIntroductionIntroductionIntroduction India began liberalising its economy and, in particular, its manufacturing sector over a decade ago. One of the objectives of liberalisation has been to make Indian industries more efficient and globally competitive. Towards this end, the government of India has been pursuing three sets of reforms: one, disbanding the complex network of industrial controls, industrial licensing and permits system; two, liberalising foreign trade and currency transactions and three, instituting several measures to facilitate foreign direct investment (FDI) inflows. These measures were launched in the year 1991 and the liberalisation process is still continuing. It was argued that the removal of entry and licensing barriers would expose Indian firms to international competition and compel them to improve their efficiency and productivity and introduce new processes and products. Trade reforms aimed at exposing Indian firms to global markets will compel them to produce better quality goods. Removal of import restrictions and currency transactions will enable them to import better quality materials, components and technology. FDI inflows will have technology and productivity spillover effects and would improve the productivity of Indian firms.

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.

A M Khusro: A Tribute

A M Khusro, who passed away last month, was a multifaceted personality: an outstanding teacher, an exceptionally good research guide, a well-liked vice-chancellor, a successful diplomat and adviser on economic policy to the government in a variety of capacities.

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.

Globalisation and the Budget

Indian institutions such as the law courts, ports, customs, taxation, stock exchanges, banks and others relating to infrastructure creation and maintenance do not function efficiently. Unless India urgently undertakes vital reforms to set its institutions right, higher levels of growth and development may not be possible.

Declining Investment Rate and Union Budget

Evidence from literature and data on inter-state differences show that FDI inflows and investment by domestic firms depend on a common set of variables. To drastically increase the investment rates, the government should increase the spending on infrastructure - both physical and social, introduce major administrative reforms to improve efficiency and reduce delays and bottlenecks. These are not possible unless the size of the government is reduced and transparency and accountability in decision-making and administration introduced. Hard and harsh decisions should start with the ruling class, namely, reducing the pecuniary benefits to the parliamentarians, introducing a ceiling on the size of union and state cabinets, and closing down of several government departments that have no role to play in the new economic regime.

European and Japanese Affiliates in India

This paper attempts to identify the variables that distinguish Japanese FDI from European FDI, and to test for their significance in differentiating the conduct and performance of Japanese and European firms in India. There have been studies which demonstrated that multinational enterprises as a group behave differently from non-affiliated local firms. This study highlights intra-MNE differences related to nationality of the MNC, nature of the Indian partner and industry-specific characteristics.

WTO and the Globalisation of Enterprises

This study surveys the literature and evidence relating to the relationships between technology imports and innovative activities, impact of technology imports and innovative activities on exports, the influence of strategic groups like MNEs and technology licensees on trade, and the role of information technology in the globalisation of small and medium firms. Furthermore, it uses the literature survey to discuss the future prospects for Indian firms under the WTO regime.


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