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Identifying the impact of geographical proximity on spillover effect of FDI: The evidence from Indian local firms' performance gains

机译:识别地理邻近地理邻近对外国直接投资溢出效应的影响:来自印度本地公司业绩收益的证据

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This paper investigates the role of geographical proximity on FDI spillovers from foreign to Indian local firms. We use data set of the manufacturing firms between 1988 and 2018 in India, estimating the productivity based on Cobb-Douglas production function. For measuring geographical proximity, the coordinates of each firm, represented to as 'latitude and longitude', provided by Google maps geocoding API is used. To conduct spatial analysis, we adopted the revised 'SINM' (Spatial Industrial Network Model)' with GMM estimator, and used firm based point spatial unit. The analysis, in particular, reveals that within 30 km-70 km distance the presence of FDI creates significant positive backward and negative horizontal spillovers, but gradually decaying as threshold increases. Meanwhile, the negative horizontal spillovers to Indian local firms located within industrial clusters turned to positive, and the positive backward spillovers more magnifies compared to non-clustered firms. Based on these findings, we suggested the several policy implications regarding the development of industrial cluster, FDI promotion policy, and location decision for foreign investors.
机译:本文调查了地理位置接近来自外国对印度当地企业的外国直接投资溢出效果的作用。我们在印度使用1988年至2018年间的制造公司的数据集,估计基于Cobb-Douglas生产功能的生产力。为了测量地理接近,使用Google Maps Google Maps地理编码API提供的每个公司的坐标,代表为“纬度和经度”。为了进行空间分析,我们采用了GMM估计的修订后的“SINM”(空间工业网模型),并使用了基于坚固的点空间单元。特别说明,分析表明,在30公里 - 70公里范围内,FDI的存在会产生显着的正向后和负水平溢出效果,但随着阈值增加,逐渐衰减。同时,与非聚集企业相比,位于产业集群内的印度局部公司的负水平溢出率转向积极,呈正向落后溢出更多的放大率。基于这些调查结果,我们建议有关外国投资者的工业集群,外国直接投资政策和地点决定的发展的几项政策影响。

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