Benefitting from Investment Abroad? Evidence from Indian Manufacturing

Asia and the Global Economy Pub Date : 2022-01-01 DOI:10.1016/j.aglobe.2021.100022

Isha Chawla

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引用次数: 2

Abstract

This paper studies the relationship between outward foreign direct investment (OFDI) and domestic performance for Indian firms utilizing propensity score matching combined with a difference-in-differences specification. We find modest effects on total factor productivity (TFP), but complementary effects on exporting and sales. Multiple sources of heterogeneity in treatment effects are considered. Taking the foreign investment decision as one that may differ in intensity, continuous treatment based on dose (OFDI intensity)-response (TFP growth, sales growth, export intensity) functions shows an inverted U-shaped relationship complementing previous exports-performance literature. Export intensity shows a robust relationship in which performance rises relative to a dose of zero, within a range of OFDI intensity. As the foreign involvement of Indian firms is still very low, there appears to be a considerable interval over which OFDI can favorably impact home effects. OFDI policy should support the benefits of outward investment, focusing on firms with small OFDI positions

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从海外投资中获益?来自印度制造业的证据

本文利用倾向得分匹配结合差中差规范研究了印度企业对外直接投资(OFDI)与国内绩效的关系。我们发现对全要素生产率(TFP)的影响不大，但对出口和销售的影响是互补的。考虑了治疗效果异质性的多种来源。将对外投资决策视为可能存在强度差异的决策，基于剂量(OFDI强度)-响应(TFP增长、销售增长、出口强度)函数的持续处理显示出倒u型关系，与之前的出口绩效文献相辅相成。在对外直接投资强度的范围内，出口强度显示出一种稳健的关系，在这种关系中，绩效相对于剂量为零而上升。由于印度公司的海外参与程度仍然很低，对外直接投资对国内效应的有利影响似乎存在相当大的间隔。对外直接投资政策应支持对外投资的好处，重点关注对外直接投资规模较小的公司

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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Asia and the Global Economy

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