Foreign Direct Investment and Labour: The Case of Indian Manufacturing’ , Labour & Development, 10(1), pp. 58–79, 2004 (original) (raw)

Foreign Direct Investment and Labour: The Case of Indian Manufacturing

Labour & Development, 2004

Indian manufacturing. The findings suggest that foreign firms do not have any adverse effects on the manufacturing employment in India as compared to their domestic counterparts while they significantly pay relatively higher to their workers. Therefore this study tends to imply that labour in fact had benefited from foreign investment in India.

Employment effect of foreign direct investment in Indian manufacturing industries

2018

This paper examines the employment effects of Foreign Direct Investment (FDI) in India’s manufacturing industries. It also examines whether the nature of employees mediates the employment effects of FDI in the manufacturing industries. We have employed 54 threedigit industries from the Annual Survey of Industries for the period from 2008-09 to 2015-16. Estimating an extended dynamic labour demand model through the System-Generalized Method of Moment developed by Blundell and Bond (1998), we have not observed any considerable impact of FDI on employment in the manufacturing industries. Even after controlling for the nature of employees, FDI inflow is not found to have any significant effect on domestic demand for labour in Indian manufacturing industries. The paper thus does not consider FDI as an important channel for employment generation in the manufacturing industries in India. JEL Classification: F23; J23

Impact of foreign direct investment on manufacturing sector of india: a post reform analysis

Foreign Direct Investment (FDI), a source of investment from investors other than the host country, is considered as a major contributor in accelerating the economic growth of a country. Recognizing the potential of FDI, the Indian Government over years has taken various steps on policy and implementation front to encourage greater inflow of FDI under automatic route and has shifted its stringent regime to liberal one

The Impact of Foreign Direct Investment on Employment Opportunities: Panel Data Analysis: Empirical Evidence from Pakistan, India and China

2009

raised the question whether foreign direct investment (FDI) contributed to employment generation in Mexico and, thereby, helped overcome the country's pressing labour market problems. The analysis drew on highly disaggregated FDI and employment data covering almost 200 manufacturing firms. They estimated dynamic labour demand functions for blue and white collar workers, including both FDI and its interaction with major industry characteristics. By employing the GMM estimator suggested by Arellano and Bond (1991), they accounted for the relatively short time dimension of the panel data (1994)(1995)(1996)(1997)(1998)(1999)(2000)(2001)(2002)(2003)(2004)(2005)(2006). It turned out that FDI had a significantly positive, though quantitatively modest impact on manufacturing employment in Mexico. In contrast to a widely held view, this applies to both white collar and blue collar employment. Moreover, the positive effect on blue collar employment diminished with increasing skill intensity of manufacturing industries.

Employment Effects of Foreign Direct Investment in Host Developing Countries: Survey and Trends.

This study consists of two main parts. The first part is a synthesis of some of the main research findings within the branch of the literature on the labour market effects of globalisation relating to FDI and labour markets. It reviews the empirical literature on the impact of FDI on employment, which has already been carried out in specific sectors, specific firms and specific countries. The survey, which is not exhaustive, only covers those FDI issues, which deals mainly with the direct employment consequences in the host developing countries. The second part builds upon the data and insights gathered in the course of the reviewed studies. It presents the data-series, which most of the reviewed empirical literature is based upon. The trends of the dependent employment variable and the various independent variables such as the in-and out-flow of foreign direct investment; the gross-and net domestic investment as well as the gross domestic production are all traced. Keywords: Multinational Enterprises (MNE), Foreign Direct

An analysis of the impact of foreign direct investment on the Indian economy

2004

Foreign direct investment has been playing an important role in the economic development of the countries. It aims at assisting in transferring of financial resources, technology, management techniques and ideas. Due to the initiation of globalization, developing countries especially Asian nations, have been witnessing an immense surge in the flow of FDI during the last three decades. Although India has been a latecomer in the matter of FDI as compared to other East Asian countries, it has immense market potential and hence it is one of the most favourable market for FDI. This research paper is an attempt to study the impart of FDI on Indian Economy and challenges it has brought to the nation along with other forces of globalization.

How Does Trade, Foreign Investment, and Technology Affect Employment Patterns in Organized Indian Manufacturing?’, Indian Journal of Labour Economics, 49(2), pp. 249–272, 2006,

This paper investigates into the impact of trade, foreign investment, and technology on three different employment patterns in India’s organized manufacturing sector. These employment patterns cover three disadvantage categories of workers viz., women vis-à-vis men workers, contract vis-à-vis regular workers and unskilled visà-vis skilled workers. A conceptual and empirical framework has been developed linking these employment patterns to trade, foreign investment, and technology, and tested for a sample of Indian industries. The research suggests that trade has been employment promoting for women and unskilled workers while it has remained neutral between contract and regular workers. The impact of foreign investment has been observed to be negative for contract and unskilled workers. The overall impact of technology encompassing in-house R&D, foreign technology imports, and capital-intensity has been mostly negative for women and unskilled workers but positive for contract workers.

Foreign Direct Investment: Impact on Indian Economy

With the initiation of globalisation, developing countries, significantly those in Asia, are witnessing a Brobdingnagian surge of FDI inflows throughout the past 2 decades. Even tho' India has been a arriver to the FDI scene compared to alternative East Asian countries, its substantial market potential and a liberalized policy regime has sustained its attraction as a favourable destination for foreign investors. This analysis paper aims to examine the impact of FDI on the Indian economy, significantly when 2 decades of economic reforms, and analyzes the challenges to position itself favorably within the international competition for FDI. The paper provides the major policy implications from this analysis, besides drawing attention on the complexities in decoding FDI knowledge in India. Objectives: The analysis paper covers the subsequent objectives: • to check the trends and pattern of flow of FDI. • To assess the determinants of FDI inflows. • toguage the impact of FDI on the Indian economy.

Comparative Analysis of Impact of Foreign Direct Investment, Exports and Employment on Growth of Manufacturing Industries in India

Asian Economic and Financial Review, 2018

In today's ever-changing environment of international trade and investments, each economy has been aiming towards attracting higher investments and enhancing exports. This makes it evident to investigate and analyze the relationship between Foreign Direct Investment and Growth in terms of output of each industry of the economy. A number of studies have been conducted for analyzing the relationship and impact of FDI on Growth of the aggregate economy with only a few for industry wise analysis. This paper aims at assessing the impact and relationship of FDI and Growth with each other at the industry level. The impact is examined through Panel cointegration test followed by Random effects model. Granger causality test is also applied to assess the causation of each of these. The results indicate that Growth and FDI impact each other significantly at the industry level. Contribution/ Originality: This study is one of very few studies which have investigated sector specific analysis of FDI and its impact on growth and employment. This study contributes in the existing literature specifically for India to analyze sector specific FDI inflows and suggests policy for way forward.